Innovative Developments In Guernsey In 1997

During 1997 Guernsey consolidated its position as Europe's premier captive location with steady growth in terms of new registrations and expansion of existing business. 26 new captive registrations were issued in the year, and with 9 surrenders this produced a net increase of 17, bringing the total of offshore insurers to 352 (340 captives and 12 offshore life companies).

The number of new registrations was appreciably less than last year. One reason for this drop in new business is the soft insurance market, which has had the effect of companies opting to place certain risks in the 'commercial' insurance market, to take advantage of favourable premium rates, rather than using the captive route. The various recent mergers and acquisitions of insurance brokers has led, in turn, to the merging of captive management operations which will inevitably have diverted these companies from the development of new business.