1. Private
Cap+ve
Insurance

2.
Private
Cap+ve
Insurance
(Guernsey)
Limited
Private
Cap+ve
Insurance
for
Family
Offices

3. ▪ Cap+ve
insurance
is
the
process
by
which
insured
risks
can
be
combined
to
access
the
“wholesale”
re-­‐insurance
market,
historically
only
available
to
companies
due
to
the
size
of
premiums
required
by
re-­‐insurance
companies.
▪ We
have
now
created
an
innova+ve
and
highly
cost-­‐effec+ve
solu+on
to
provide
the
same
benefits
of
substan+ally
lower
premiums
and
more
client-­‐based
risk
management
for
privately
held
assets.
▪ We
combine
each
family’s
insurable
risks
to
access
the
re-­‐insurance
market
but
rather
than
the
costs
of
establishing
a
stand-­‐alone
cap+ve
insurance
company,
we
have
developed
the
use
of
a
Guernsey
Protected
Cell
Company
(PCC)
to
provide
the
cap+ve
insurance.
The
PCC
is
licensed
by
the
Guernsey
Financial
Services
Commission
(GFSC).
▪ The
PCC
can
create
mul+ple
cells,
each
one
effec+vely
providing
a
wrapper
through
which
a
family’s
en+re
assets
can
be
insured.
By
combining
all
the
risks
into
one
policy,
there
is
sufficient
premium
to
obtain
insurance
cover
from
a
re-­‐
insurance
company.
There
is
a
single
policy
&
premium
rather
than
the
cumbersome
administra+on
when
assets
are
insured
individually.
1
What
is
cap+ve
insurance?

4.
▪ Each
cell
is
legally
segregated
from
the
other
cells
and
separately
regulated
by
the
GFSC
in
addi+on
to
the
PCC
as
a
whole.
Families
therefore
have
two
levels
of
protec+ve
regula+on
in
addi+on
to
the
corporate
governance
of
the
PCC
itself.
▪ The
insurance
risks
within
a
family’s
cell
can
be
either
par+ally
retained
(if
the
client
iden+fies
a
specific
level
of
exclusions
which
will
reduce
premiums)
or
be
fully
re-­‐insured
by
the
cap+ve
insurance
manager.
▪ If
the
family
opts
to
retain
some
risk
within
the
cap+ve
insurance
company
(i.e.
not
fully
re-­‐insure
the
total
risk),
if
there
is
no
loss,
a
surplus
of
capital
can
be
built
up
over
+me.
This
surplus
can
then
be
carried
forward
to
cover
any
future
losses
and
act
as
an
offset
against
the
future
amount
of
re-­‐insurance
required.
This
will
mean
that
the
premiums
payable
will
fall
over
+me.
▪ If
the
family
does
not
want
to
retain
risk
(i.e.
accepts
a
level
of
exclusions),
then
the
total
risks
can
be
fully
re-­‐insured
and
the
cap+ve
used
for
re-­‐insurance
“arbitrage”,
thereby
benefiUng
from
the
cheaper
premiums
available
from
the
wholesale
re-­‐insurance
market.
▪ This
innova+ve
solu+on
provides
families
with
bespoke
cap+ve
insurance
for
both
personal
assets
and
any
companies
they
own
at
a
frac+on
of
the
cost
of
establishing
a
stand-­‐alone
cap+ve
insurance
company.
Addi+onally,
it
provides
families
with
the
following
benefits.
2
What
is
cap+ve
insurance?

5.
▪ By
combining
all
the
insurable
risks
within
the
cell
under
one
policy,
there
is
sufficient
premium
to
access
the
re-­‐
insurance
market
where
the
cost
of
cover
is
substan+ally
lower.
▪ Ability
to
obtain
cover
for
risks
tradi+onally
difficult
or
impossible
to
insure
(e.g.
Kidnap
&
Ransom).
▪ As
the
cap+ve
manager
places
the
risks
in
each
cell
directly
with
the
re-­‐insurance
company,
there
are
no
“retail”
insurance
brokers’
commissions
(typically
15%
–
25%
embedded
within
the
premium)
or
retained
earnings
by
the
retail
insurance
company
(only
by
the
re-­‐insurance
company).
Two
levels
of
fees/costs
are
therefore
removed.
▪ Premiums
are
based
not
only
on
the
value
of
each
asset
but
also
the
claims
history.
The
family
office
will
therefore
pay
insurance
based
upon
the
family’s
own
risk
profile,
not
on
the
general
insurance
market
rate,
which
can
lead
to
substan+al
cost
savings.
▪ Cap+ve
insurance
provides
flexible
risk
management
as
even
a
modest
level
of
exclusions
can
result
in
a
large
cut
in
the
family’s
premium.
However,
full
coverage
can
be
provided,
if
preferred.
The
benefits
of
PCI’s
cap+ve
insurance
3

6.
▪ As
financial
solvency
to
pay
claims
is
cri+cal,
PCI
is
working
with
insurance
specialists
and
has
iden+fied
and
constructed
a
panel
of
the
best
capitalised
re-­‐insurance
companies
globally.
Crea+ng
a
panel
also
provides
the
benefit
of
diversifica+on
of
counter-­‐party
risk.
However,
the
family
office
can
select
the
re-­‐insurance
company,
if
preferred.
▪ The
PCC
and
the
individual
cells
are
managed
by
one
of
the
most
experienced
cap+ve
insurance
managers
globally
which
currently
administers
in
excess
of
350
cells
from
mul+ple
jurisdic+ons.
▪ There
is
minimal
administra+on
for
the
family
office
as
an
annual
cell
owner’s
mee+ng
typically
covers
all
the
relevant
issues.
Rather
than
having
to
complete
numerous
policies
there
is
just
one.
Also,
any
claims
are
administered
by
you
cap+ve
manager
which
can
use
its
leverage
with
the
re-­‐insurers
to
arrange
quick
and
efficient
sedlement.
▪ PCI
has
created
a
more
cost-­‐effec+ve
solu+on
to
insurance
management
than
crea+ng
a
personal
family-­‐owned
insurance
company
which
requires
substan+al
capital
outlay
and
is
very
costly
to
run.
▪ There
are
poten+al
tax
benefits
if
the
family’s
assets
are
held
through
certain
types
of
offshore
trust,
especially
where
there
is
a
non-­‐domiciled
Sedlor.
Tax
benefits
may
also
apply
to
situa+ons
where
the
family
owns
trading
companies.
NB:
We
are
not
tax
advisors
and
you
should
seek
specialist
tax
advice.
4
The
benefits
of
PCI’s
cap+ve
insurance

7. 5
High
value
personal
assets
What
can
be
included
in
your
Cap+ve
Cell?
MARINE
PROPERTY
ART
&
COLLECTABLES
AVIATION
BLOODSTOCK

8. 6
The risks of trading
and
commercial
companies
What
Can
be
Included
in
Your
Cap+ve
Cell?
COMMERCIAL
PROPERTY
PROPERTY
MOTOR
PERSONAL
INDEMNITY
KIDNAP
&
RANSOM
PUBLIC
LIABILITY

9. Directors
NEDs
PCC
CORE
Auditors
Regulated
CELL 1
Each cell
owned by a
separate client
CELL 2
Cells
individually
regulated by
The GFSC
CELL 3
Cells have the
same
governance
as the core
CELL 4
Each cell
writes a single
policy for its
owner & re-
insures the
risks
CELL 5
Cell pays any
claims funded
by the re-
insurer
Structuring
of
The
Cap+ve
7

10. PCI
as
your
cap+ve
insurance
partner
PCI
combines
exper+se
in
insurance,
trusts,
wealth
planning
&
structuring.
Our
exper+se
includes:
• The
management
of
more
than
350
cells
(by
our
cap+ve
managers).
• Having
worked
with
the
largest
global
insurance
companies.
• More
than
50
years
advising
trustees
and
family
offices.
• Management
of
re-­‐insurance
programs
to
create
op+mal
alloca+on
across
a
range
of
re-­‐insurers
(by
our
re-­‐insurance
management
team).
• Leading
private
wealth
and
trust
legal
exper+se
on
The
Board.
8

11. 9
Your
team
at
PCI
Dennis
Govan
Paul
Bailey
Russell
Bussey
Non-­‐Execu+ve
Director
Non-­‐Execu+ve
Director
Consultant
Dennis’s
career
spans
over
35
years
in
interna+onal
financial
services
as
CEO,
NED,
advisor
to
the
board
and
consultant
across
mul+-­‐disciplined
businesses.
Dennis
has
led
investment,
corporate
and
retail
businesses
in
the
UK,
Europe,
USA,
Middle
East
and
the
Caribbean.
Dennis
qualified
as
an
Associate
of
The
Ins+tute
of
Taxa+on,
UK
(ATII)
and
Member
of
The
Chartered
Insurance
Ins+tute,
UK
(CERT
PFS)
and
in
2008
completed
a
Bank
Leadership
Programme
“Exec
MBA”
at
Wharton,
University
of
PA,
USA.
Paul
has
28
years
experience
working
with
interna+onal
families
and
trustees,
primarily
in
the
field
of
wealth
management.
He
started
his
career
working
for
Schroders
in
London
and
aaer
12
years
joined
GAM,
where
he
was
a
Client
Director
both
in
London
and
Bermuda.
Paul
has
been
a
regular
speaker
at
conferences
on
a
broad
range
of
topics
related
to
private
wealth
and
is
a
Member
of
the
Oversight
Committee
for
the
STEP
Indices.
Paul
holds
a
BSc
(Honours)
Degree
in
Banking
&
Interna+onal
Finance
from
The
City
University,
London.
Russell
has
over
36
years
experience
and
was
a
Director
of
both
UBS
and
Credit
Suisse.
Russell
was
responsible
for
the
Society
of
Trust
and
Estate
Prac++oners
(STEP)
Managed
Poreolio
Indices
service
and
was
Deputy
Chairman
of
the
highly
esteemed
STEP
Awards
Programme
for
9
years.
Russell
has
worked
in
Switzerland
and
the
US
and
has
been
advising
clients
in
the
Channel
Islands
and
IOM
for
over
30
years.
A
regular
industry
commentator,
Russell
has
had
ar+cles
published
in
many
Private
Client
Journals
and
has
been
quoted
in
the
FT.
Russell
holds
the
IMC
Cer+ficate.

12. 10
Your
team
at
PCI
Gavin
Ferguson
Director
Gavin
is
the
Managing
Partner
of
the
Guernsey
office
and
prac+ses
in
the
Private
Client
&
Trusts
Department
of
Appleby
Group.
He
is
qualified
to
advise
on
both
the
laws
of
the
BVI
and
Guernsey
and
provides
conten+ous
and
non-­‐conten+ous
fiduciary
services
to
high
net
worth
individuals,
corporate
clients
and
chari+es.
He
advises
on
all
aspects
of
trust
and
founda+on
law
and
also
on
regulatory
majers,
general
private
client
majers
(including
probate)
and
has
an
interest
in
Sharia
compliant
trust
structures.
Gavin
is
a
qualified
English
solicitor
(non-­‐
prac+sing),
BVI
solicitor
and
Guernsey
Advocate.
Gavin
is
personally
licensed
by
the
Guernsey
Financial
Services
Commission
to
provide
regulated
services
including
ac+ng
as
a
personal
trustee,
protector,
director
and
counsel
member.
Clive
James
is
Group
Chief
Opera+ng
Officer
at
Kane
Group
and
is
primarily
responsible
for
ini+a+ng
and
developing
structures
for
clients.
Clive
brings
over
30
years’
insurance
management
exper+se
to
the
posi+on
and
has
a
proven
track
record
in
strategic
and
long-­‐term
planning
with
a
focus
on
business
development,
financial
planning
and
business
efficiency.
Previously,
Clive
was
group
Managing
Director
at
Aon
Global
Insurance
Managers,
where
he
was
responsible
for
managing
some
520
staff
in
30
domiciles
with
1,300
clients.
Clive
is
an
Associate
of
the
Chartered
Insurance
Ins+tute
and
holds
an
Honours
degree
in
Business
Studies
from
Plymouth
University.
Director
Clive
James
Mark
Rogers
is
a
Senior
Account
Manager
at
Kane
Guernsey.
Mark
is
responsible
for
the
day
to
day
management
of
the
Guernsey
office,
and
the
administra+on
of
a
leading
mul+-­‐class
cell
company
located
in
Guernsey.
Mark
is
a
qualified
and
experienced
accountant
who
has
been
working
in
the
financial
industry
for
over
25
years,
including
roles
in
the
commercial,
trust,
fund
management
and
cap+ve
insurance
sectors.
His
exper+se
includes
the
selng
up
of
cap+ves
for
mul+na+onals
and
global
opera+ons
and
their
successful
development
and
profitability.
He
was
also
been
on
the
Board
of
several
cap+ves
as
well
as
silng
on
sub
commijees
rela+ng
to
both
accoun+ng
and
insurance.
Mark
is
a
Fellow
of
the
Associa+on
of
Chartered
Cer+fied
Accountants
(FCCA).
Director
Mark
Rogers

13. 11
As
Guernsey
has
over
700
cap+ve
insurance
companies,
there
is
a
very
well
developed
professional
support
infrastructure
including
the
large
accountancy
firms,
interna+onal
law
firms,
actuaries,
fiduciaries
and
banks.
Guernsey
is
one
of
the
world’s
foremost
domiciles
for
cap+ve
insurance
and
the
leading
jurisdic+on
in
Europe,
with
cap+ves
for
40%
of
the
top
FTSE
100
UK
companies.
It
was
the
first
domicile
to
introduce
Protected
Cell
legisla+on.
Guernsey
-­‐
Exper+se
in
Cap+ve
Management
Guernsey
is
not
part
of
the
EU
but
cap+ve
insurance
can
be
provided
directly
to
the
UK.
Assets
located
within
Europe
but
owned
by
offshore
trusts
can
be
covered.
Cap+ve
insurance
can
be
provided
to
EU
countries
typically
through
a
local
provider
that
re-­‐insures
with
the
cap+ve
cell.

14. Establishing
Your
Cap+ve
1
You
provide
details
of
the
insurance
you
want
included
within
your
cell.
Typically
this
includes
details
of
the
assets,
valua+on,
any
recent
claims,
level
of
cover
required
and
current
premiums.
2
Informa+on
for
Feasibility
Study
Based
upon
the
informa+on
provided,
the
cap+ve
manager
calculates
the
premium.
This
will
depend
upon
prevailing
re-­‐insurance
rates,
type
of
cover
and
claims
history.
This
is
compared
with
current
premiums
to
determine
if
a
cap+ve
cell
is
cost-­‐
effec+ve.
Feasibility
Study
Completed

15. 3
Once
the
decision
is
taken
to
proceed,
the
cell
is
incorporated.
No
capital
is
required
for
incorpora+on
and
the
process
is
straighmorward.
4
Crea+on
of
Your
Cell
The
Owner
pays
the
premium.
Where
risk
has
been
retained,
capital
is
also
paid
into
the
cell
equivalent
to
the
solvency
margin.
Payment
is
not
remijed
into
the
UK.
Payment
of
Premium
to
Cell
(Plus
Solvency
Capital
if
Risk
is
Retained)
5 It
is
the
cell,
being
a
regulated
insurance
company,
that
issues
the
insurance
policy
from
Guernsey.
Cell
Issues
the
Insurance
Policy

16. 6
All
aspects
of
your
cell
is
managed
by
Private
Cap+ve
Insurance
PCC
Limited.
Any
retained
profits
due
to
no-­‐claims
are
accumulated
and
can
be
paid
as
a
dividend
or
retained
un+l
the
cell
is
eventually
wound-­‐up.
7On-­‐going
Management
of
Your
Cell
Coinciding
with
the
issue
of
the
policy
by
the
Cell,
the
agreed
level
of
risk
is
placed
with
the
re-­‐insurer.
Reinsurance
of
Your
Cell’s
Risk.
14

17. Combines
all
your
insurable
risks
to
access
the
compe++ve
re-­‐insurance
market,
reducing
your
premiums.
15
Summary
of
the
benefits
Premium
based
on
your
risks,
not
the
general
market
level
of
losses.
Removes
broker’s
commissions
(typically
15
-­‐
25%
of
the
cost
of
premiums).
Flexible
management
of
the
total
level
of
cover
and
ability
to
include
risks
where
cover
not
generally
available.
Possible
tax
benefits
for
some
types
of
trust
and
also
for
on-­‐shore
trading
companies.
Simple
to
incorporate,
as
no
capital
required
at
cell
level
ini+ally
and
then
only
when
any
risk
is
retained
by
the
cell.
Two
+ers
of
regulatory
oversight
and
a
highly
experienced
team.
Ease
and
minimal
cost
of
winding-­‐up
your
cell
should
it
no
longer
be
required.

18. Next
Steps…
16
There
can
be
considerable
benefits
for
Trustees
by
using
a
Guernsey
PCC
to
provide
cap+ve
insurance
instead
of
‘tradi+onal’
mul+ple
policies.
We
hope
that
this
will
be
of
interest.
Please
contact
us,
as
detailed
on
the
following
slide,
to
proceed
with
the
Feasibility
Study
for
which
there
is
no
cost
but
all
the
poten+al
future
benefits.
Private
Cap+ve
Insurance
PCC
Limited
has
taken
every
care
in
the
prepara+on
of
the
content
of
this
presenta+on.
However,
to
the
extent
permided
by
applicable
law,
Private
Cap+ve
Insurance
PCC
Limited
does
not
represent
or
warrant
the
accuracy
or
reliability
of
any
informa+on
or
content
about
any
service
contained
in
this
presenta+on.
To
the
fullest
extent
permided
by
applicable
laws,
Private
Cap+ve
Insurance
PCC
Limited
hereby
excludes
liability
for
any
claims,
losses,
demands
or
damages
of
any
kind
whatsoever
with
respect
to
this
presenta+on
including,
without
limita+on,
direct,
indirect,
incidental
or
consequen+al
losses
or
damages,
whether
arising
from
loss
of
profits,
loss
of
revenue,
loss
of
data,
loss
of
use
or
otherwise
and
whether
or
not
the
possibility
of
such
loss
has
been
no+fied
to
Private
Cap+ve
Insurance
PCC
Limited.
The
foregoing
will
apply
whether
such
claims,
loss
or
damages
arise
in
tort,
contract,
negligence,
under
statute
or
otherwise.These
terms
shall
be
governed
by
and
construed
in
accordance
with
English
law.
If
any
provision
of
these
disclaimers
and
exclusions
shall
be
unlawful,
void
or
for
any
reason
unenforceable,
then
that
provision
shall
be
deemed
severable
and
shall
not
affect
the
validity
and
enforceability
of
the
remaining
provisions.
Copyright:
Private
Cap+ve
Insurance
PCC
Limited.
All
rights
reserved.
No
part
of
this
presenta+on
may
be
reproduced
without
the
prior
wriden
consent
of
Private
Cap+ve
Insurance
PCC
Limited.
Private
Cap+ve
Insurance
PCC
Limited,
Noble
House,
Queens
Road,
St
Peter
Port,
Guernsey
GY1
1PT.
Licensed
by
the
Guernsey
Financial
Services
Commission.

19. 17
Contact
Details
W
Paul
Bailey
-­‐
+44
(0)7810
38
39
37
Russell
Bussey
-­‐
+44
(0)7881
62
55
80
Dennis
Govan
-­‐
+44
(0)7767
20
03
33
paulbailey@privatecap+ve.com
russellbussey@privatecap+ve.com
dennisgovan@privatecap+ve.com
www.privatecap+ve.com