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MARSH CAPTIVE SOLUTIONS

Mangrove Insurance Solutions

A protected cell captive insurer (PCC) is a company with a structure that creates a legal separation of its assets and liabilities into a number of different cells and a central core. The purpose of such an arrangement is to effectively "ring-fence" the assets and liabilities of each cell and offer protection to cell owners from the liabilities and creditors of other cells. Although each cell’s assets and liabilities are separate from those of the core and of all other cells, the PCC is a single entity.

Mangrove PCC

Mangrove Insurance Solutions PCC and Mangrove Insurance Solutions PCC Ltd, established in Washington DC and Isle of Man domiciles by Marsh’s Captive Solutions Group, are designed to insure or reinsure risks of unrelated shareholders.

By focusing on providing clients with a low-cost captive alternative, a Mangrove PCC participant can access an array of funding options and potentially realise cost-savings and profit compared to those of a wholly owned captive or other risk-financing alternative.

Mangrove PCC Structure

Mangrove requires that cell owners enter into participation, subscription, and management agreements with the sponsor. Non-voting shares are issued to each cell owner, who pay their share of the ongoing costs through a flat fee for administration.

Generally, a legal separation exists between each of the cells within the PCC. This protects the owners of one cell from any losses attributable to other cells within the PCC, subject to the satisfaction of all required conditions.

Mangrove PCC will work with the cell owner to determine the amount of capital needed for the owner’s individual cell to satisfy the capital funding requirements set by the sponsor and the regulator.

Benefits of Mangrove PCC

The owner of a cell in Mangrove may receive some or all of the following benefits:

  • Cost effective risk-financing vehicle;
  • Flexibility in programme design;
  • Minimal management time requirement;
  • Cell typically licensed and operational within 2 weeks of date of licence application; and
  • Statutory segregation of various risks.