Guernsey makes an increasingly attractive location to conduct reinsurance business, providing experience and expertise within a proven regulatory environment.
The advantages of Guernsey as a reinsurance centre
Captives, sidecars and transformers
In total, there are more than 800 international insurance and reinsurance entities in Guernsey. Local providers offer insurance management services to the full spectrum of insurance vehicles including:
- reinsurance subsidiaries
Due to the growing frequency of enquiries, the Guernsey International Insurance Association (GIIA) has produced a guidance note on the formation and management of insurance and reinsurance special purpose vehicles in Guernsey.
Expertise & experience
Investment managers conducting reinsurance business within Guernsey’s growing reinsurance sector include Barbican Re, Humboldt Re, Kelvin Re, Nomura Re, and Solidium Re.
Humboldt Re is a privately owned reinsurance company based in Guernsey that mainly provides short-tail property and specialty lines reinsurance. With an initial capital outlay of CHF 500 million, Humboldt Re intends to build a portfolio of approximately CHF 140 million gross written premiums, with globally diversified reinsurance exposures focused on property catastrophe.
The Company offers cedent partners valuable risk transfer opportunities through its diversified business profile and significant line size which is facilitated through the distribution and reach of a leading insurance-linked securities originator, currently with assets under management of approximately USD 7.1 billion.
The Company was established in Guernsey as a result of its (re)insurance expertise, firm but proportional regulatory environment and its proximity to Central Europe. Humboldt Re employs seven staff and is bolstered by a local insurance manager which provides any support services required by the Company. The Company is licensed by the Guernsey Financial Services Commission.
A.M. Best has assigned a financial strength rating of A- (Excellent) and an issuer rating of A- to Humboldt Re Limited.
In assigning its ratings to Humboldt Re, A.M. Best said: "The ratings reflect Humboldt Re's diversified projected underwriting exposure within the natural catastrophe spectrum, expected strong risk-adjusted capitalisation, a risk management framework adequate to its intended business profile and its experienced management. Offsetting rating factors include the challenges related to the immediate execution of its proposed business plan in current market conditions."
Despite challenging market conditions, the first half year results of Humboldt Re are encouraging and are on track to exceed its first year business plan objectives.
The outlook is positive and exciting for Guernsey’s latest commercial reinsurance company.
The Guernsey Financial Services Commission (GFSC) supervises the insurance and reinsurance sector through a risk-based approach that is tailored to your business.
Guernsey's regime distinguishes between commercial (re)insurance and captive insurance. While commercial (re)insurance companies in Guernsey may choose to comply with the full requirements of Solvency II, captive insurers may choose to comply with a less onerous set of rules.
Read more here.
Modern insurance law
Guernsey first introduced insurance law in 1986. The law applicable to insurers and reinsurers today is the Insurance Business (Bailiwick of Guernsey) Law, 2002, (as amended).
The island has made several changes to the law since 2002 so that the island’s laws remain fit for purpose.