Independent insurance and reinsurance legacy or run-off transaction specialist Compre has established a protected cell company (PCC) in Malta, which it intends to use for transactions involving portfolios of discontinued non-life insurance and reinsurance business.
Compre said this morning that it has received approval from the Maltese Financial Services Authority (“MFSA”) to establish the protected cell insurance company in the Republic of Malta.
Compre is transferring the domicile of its London & Leith Insurance SE from the UK to Malta to form the new company, setting it up as a Protected Cell Company, allowing it to form legally secure cells which can contain the assets and liabilities from transactions within a single corporate entity.
London & Leith Insurance PCC SE will operate in the legacy and run-off reinsurance space, acquiring portfolios of discontinued non-life insurance and reinsurance business.
Compre says the new set up will provide it with “greater flexibility to undertake transactions”, enhancing its ability to provide legal finality for customers transferring portfolios to the firm, or that are selling books of business or entire companies.
Compre has secured funding for further acquisitions via a revolving credit facility with the Royal Bank of Scotland (RBS), the company also announced today, enhancing its efficient borrowing capacity.
Nick Steer, CEO of Compre, commented on the news; “Gaining permission to provide finality solutions out of Malta, and the ability to use individual cells for particular business, marks an important step in the next phase of Compre’s development. This is the culmination of plans we have had for many years. With the added ability to transfer new and existing portfolios into Malta, Compre becomes a far more agile business. We are in a stronger position to meet demand and capitalise on new run-off opportunities. Meanwhile, the agreement with RBS significantly boosts our firepower for acquisitions of a broader type and scale.”
Steer also explained that the move to Malta was not a response to Brexit, and had been Compre’s intention long before the UK referendum. He said that having another regulated presence within the European Union would not be a disadvantage for the company.