Paul Scrivener provides a case study of a hedge
fund collapse of which the offshore insurance industry should
take note
The segregated portfolio company (SPC) continues to be a
much used vehicle in the Cayman Islands insurance industry. It
offers the unique advantage of being able to 'ring
fence' the assets and liabilities of several insurance
programmes within the same insurance company by using separate
segregated portfolios, or cells as they are frequently
called.
Equivalents of the segregated portfolio company are also
being used now in many jurisdictions around the world
(including certain states of the US), which suggests that these
vehicles are beginning to fall much more within the mainstream
these days. Nevertheless, the well-advised founder of an SPC
will always be given a health warning that the integrity of the
structure has still not been tested by a court in any
jurisdiction.
