The English Channel Island Guernsey has created a financial structure that is both a licensed insurance company and a regulated investment fund, according to a statement Monday from Guernsey Finance LBG, the advertising agency for the island's financial industry, which is a common industry and government initiative.
The hybrid vehicle for use in the insurance-related securities sector will lead to greater simplicity and efficiency for ILS fund managers, according to Christopher Anderson, a partner of the law firm Carey Olsen (Guernsey) LLP, who created the Guernsey Financial Services Commission-backed concept. .
The existence of a protected or incorporated mobile company that is both a licensed insurance company and a regulated investment fund means ILS managers no longer need to "rent" protected cell cells or segregated account companies to act as special insurance companies, the statement said.
"For the first time e Guernsey hybrid gives managers the ability to run an investment fund and a number of sub-funds and SPIs in one place, overseen by a regulator, ruled by a board with a set of service providers and an auditor," Anderson said
The new structure will include both investment cells that collect money from third-party investors by offering shares or other securities as well as insurance cells that write insurance and reinsurance agreements, the statement says.
The funds raised in the investment cells can be used to ensure insurance and reinsurance written by the insurance cells under a single board with the overall responsibility for the operation of the hybrid, which may appoint an external ILS fund manager or advisor, if desired. the statement is added.
"Guernsey will continue to be at the forefront of innovation in the ILS, and this is a perfect example of forward thinking" Guern sey chief financial officer Dominic Wheatley said in the statement. "This thinking is based on Guernsey's expertise in insurance and ILS and in funds where we are global specialists in private equity, listed debt and alternative assets and should lead to Guernsey becoming a natural choice for ILS managers to create a fund." [1