"Experience in using cell structures to provide
solutions to the insurance sector is strengthening the island's
position as a leading domicile", says Dominic Wheatley, chief
executive of Guernsey Finance.
Guernsey has long been recognised as a captive insurance and
cell company leader and the past 12 months have only served to
reinforce this position.
In the last year two ground-breaking longevity swap structures
were established in Guernsey using captive insurance companies in
place of insurance intermediaries, thereby cutting out intermediary
fees and removing the need for price averaging.
Cell leader
In the first of these the trustees of the BT Pension Scheme,
Britain's largest corporate pension fund, set up its own
captive insurance company, and then reinsured its longevity risk
with the US-based life insurance company, the Prudential Insurance
Company of America. In the biggest deal of its kind, the
arrangement covered 25 percent of the scheme's exposure
