Financing Transactions For Cayman Regulated Insurers

As a leading jurisdiction for the domicile of captive insurance companies and, more recently, reinsurance companies (together "insurance vehicles"), the laws of the Cayman Islands have a central role and require careful consideration when such insurance vehicles seek to approve and execute the various commercial arrangements which they require.

One commonly seen transaction is the establishment of a credit facility or letter of credit arrangement between the insurance vehicle and a financial institution or lender (either based in the Cayman Islands or in North America) (a "Financing Arrangement"). Such Financing Arrangements assist insurance vehicles in a variety of ways and smooth issues that may otherwise cause wrinkles in their cross-border business models.