Gibraltar rock

The government of Gibraltar has set up a new Protected Cell Company (PCC) category specifically designed for its insurance linked securities (ILS) market.

The new company to be know as SPV (Special Purpose Vehicles) PCC will be under the Gibraltar’s Insurance Companies Regulations 2009.

Following in the footsteps of other offshore jurisdictions such as Guernsey, Cayman Islands and Bermuda, Gibraltar hopes to attract ILS fund managers writing collateralised reinsurance business.

Albert Isola, Gibraltar’s Minister of Financial Services stated “This is yet another example of how we can innovate and work together with the private sector and the regulator to be at the forefront of new quality business for our Jurisdiction.

The launch of SPV PCCs is the next step in our ambition to become the premier ILS jurisdiction within the European Union. The SPV PCCs will complement Gibraltar’s existing standalone insurance SPVs.”

PCCs corporate structure in which is a single legal entity comprising of a core and a number of segregated parts, or “cells” were introduced around the year 2000 as a means to commoditise Special Purpose Vehicles (SPVs) and as a basis of structuring investment products.

Guernsey, the first jurisdiction to introduce PCCs, experienced an increased collateralised reinsurance and ILS business growth thanks in part to the cells incorporations according to last year’s figures from the Guernsey Financial Services Commission (GFSC).

The establishment of a variety of models in recent time allowed Gibraltar’s extraordinary development of its insurance sector, and with the new PCCs offering could push Gibraltar to become a truly international insurance centre.

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