Artex, Gallagher’s wholly-owned subsidiary for alternative risk and capital, has launched its first Vermont Protected Cell Company (PCC), to provide organisations of all sizes and industries with an alternative platform to support their risk transfer needs.
Artex Axcell PCC (Vermont), Inc. was formed in April 2024 to provide companies the ability to control their own insurance program, as well as to experience the many benefits of captive ownership without the same cost and capital requirements of a wholly-owned vehicle.
“PCCs have been one of the most important evolutions in the captive insurance marketplace in recent years, and we are thrilled to serve clients through our latest Artex Axcell PCC,” Jennifer Gallagher, CEO of Artex, North America, stated.
Cell facilities enable multiple users to operate different risk transfer activities through a single legal entity.
Each cell operates in the same manner as a traditional captive insurance company, but can be efficient in speed of set-up, operating costs and exit costs. This also means that the cell can act as a special-purpose vehicle with a single objective for a specified duration.
Another benefit of cell facilities is that assets and liabilities of each cell are segregated and protected from those of the other cells, both by statute and by contract.
According to Artex, which is one of the world’s largest cell facility managers, once clients experience a cell solution, they can also use it as a stepping stone to a single-parent captive.
Additionally, the PCC offers organisations incorporated and unincorporated cell structures, access to reinsurance and capital market capacity, cash flow benefits, and much more.
Commenting on the launch, Barry White, Executive Vice President, Sales, Analytics and Advisory for Artex, North America, said: “With Vermont now established as the largest captive domicile globally, we selected Vermont as part of our U.S. onshore strategy but also to complement our global offering.”
