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Opportunities and Solutions

General “One-Off” Transactions And Arrangements

A cell company can assist clients with unusual or one-off transactions by catering to their needs as and when they arise, often in response to unpredictable or sudden market changes.

Access To Specialized Reinsurance Markets

United Insurance Company’s principal business is providing reinsurance capacity to captive insurance companies, including cell companies, managed by Aon Global Insurance Managers. Utilizing a cell will allow clients access to this and other capacity, without the need for full captive ownership.

Access To Entire Reinsurance Market

Many of today’s property programs (though applicable to many classes of business) can remain incomplete or undersubscribed in the traditional insurance market past their renewal date. One way of addressing these incomplete placements is to access reinsurance markets, thereby facilitating complete placement. Such opportunities are typically seen at the last-minute, and require a prompt turn-around. The regulators in both Cayman and Vermont will generally approve a new cell within a week of receipt of the business plan, as opposed to longer review period for a “pure captive”.

Financing Higher Retentions

Many corporations are now being required to take higher property and casualty deductibles/SIRs than they are necessarily comfortable with. A cell within has the ability to quota-share this retention with various carriers who specialize in writing exposed and/or primary layers of programs.

Other operational benefits using a cell as opposed to a stand alone captive can include:

• Reduced corporate involvement in matter of “captive” control and governance as the cell owner does not have the same roles and responsibilities as those of a traditional captive insurance company director.
• No company incorporation costs and reduced start-up costs.
• More timely start-up
• May require less direct cash capitalization costs.
• Possibly lower frictional costs than a traditional, stand alone captive.



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