Gibraltar Sees Launch Of Second Insurance PCC

by Amanda Banks, Tax-News.com, London

19 September 2005

Aon-owned White Rock has launched White Rock Insurance (Europe) PCC Ltd, Gibraltar’s second protected cell company is launched in a bid to provide corporate insurance buyers with more tailored terrorism cover.

White Rock Insurance (Europe) PCC is Gibraltar’s second protected cell company, the first being White Rock Insurance (Gibraltar) PCC Ltd, which was licensed on 25 April 2002 following the enactment of the Protected Cell Companies Ordinance 2001.

Gibraltar is one of only of a few domiciles that offer PCC legislation, and couples this with the ability to write insurance across Europe on a freedom-of-services EU 'passport' basis.

White Rock (Europe) has a paid-up capital of 3.5 million euros and authorised capital of 50 million euros. The new PCC started underwriting in July and is already being used by a major pharma-chemical company.

White Rock (Europe) says it allows buyers to choose their own levels of retention and preferred markets for terrorism exposures. It also allows them to make savings on premiums which would previously have been paid to various government-backed terrorism pools such as Pool Re in the UK or Gareat in France. For this reason, White Rock (Europe) has been formed without membership of any of the various national pools.

“Terrorism exposures can be addressed through White Rock (Europe) either through the use of cells by clients who wish to have a captive facility to retain their risks without the need to set up their own separate company and without incurring some of the corresponding costs, or by fronting into European Economic Area territories on behalf of clients’ captives and/or reinsurers,” said Alain Dufraisse, Director of Aon Insurance Managers (Gibraltar) Ltd, and Director and Operational Executive for the Gibraltar-based White Rock companies.

White Rock Insurance (Gibraltar) PCC Ltd, Gibraltar’s first PCC, offered similar services but was allied to the domestic pools. “At the time, it was seen as convenient to provide clients with access to these pooling arrangements, but White Rock has now recognised a demand for more freedom of choice,” Mr Dufraisse added.

Cells can be set up relatively quickly. The White Rock team can provide a pricing quote and details of the next steps upon receipt of details of the client and identification of likely territories, premiums and reinsurance programmes.

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