Marsh Cell Captive Facilities

A Protected Cell Captive Insurer is a company that is structured to create a legal separation of its assets and liabilities into a number of different cells and a central core.

There are many risk financing alternatives available to organisations today. Forming a pure captive or joining a group captive may not be a preferred option for a variety of reasons, in which case an efficient and cost effective sponsored cell captive facility may be an ideal solution. Cell captives are a popular alternative to a wholly-owned captive due to the ease of implementation and lower operating costs. Companies participating in the Isosceles and Mangrove cell captive facilities are insulated from the loss experience, liabilities, and credit risks of other participants. Consequently, participants can avoid potential costs, such as additional premium requirements or capital outlays that could arise in group captive arrangements when other participating firms have poor loss experience or more volatile risk profiles.

A sponsored cell captive facility provides a licensed insurance vehicle or “cell” with the necessary infrastructure for clients to participate in their own risks through a captive program. The insured operating company effectively rents the use of the cell by purchasing a preferred share or entering into a participation agreement.

A cell captive is particularly suited to:

  • Financing risk where losses, such as workers’ compensation or auto liability, are predictable.
  • Acting as a fronting structure to access the reinsurance markets.
  • Collateralized (re)insurance, including insurance linked securities, weather derivatives, and more.
  • Companies seeking to direct write/front in the EU or non-EU/European Economic Area (EEA) captives.
  • Situations where market conditions may force retaining or funding less predictable risks.
  • Companies needing to segregate risks associated with a specific project, division, joint-venture, or strategic alliance.

Marsh Captive Solutions offers cell captive facility participants the expertise and knowledge provided by a global network of captive colleagues.

Choosing the Right  Domicile

Marsh Cell Captive Facilities Locations