New reinsurance company, Alesia Re, SPC just recently received approval from the Cayman Islands Monetary Authority as a Class D Reinsurer, with a focus on pension risk transfer and associated risks portfolios. Appleby is acting as Cayman counsel to Alesia Re, which is the first Class D reinsurer of its kind in the jurisdiction.
The segregated portfolio company will focus on reinsuring large blocks of pension risk transfer group annuity contracts and other low convexity and long-duration annuity business. In addition, their objective is to provide sustainable risk-sharing capacity by innovative structuring, prudent investment management and unparalleled enterprise risk management.
Cayman Managing Partner and member of the Cayman Finance Board, Bryan Hunter, said: “Appleby is pleased to act for Alesia Re in what is a very positive development for the Cayman Islands’ insurance sector. The establishment of this reinsurance company in Cayman is truly a testament to the collaborative approach of public and private sector partners, who continue to work tirelessly to attract new Class D reinsurers.”
The Cayman Islands Insurance Law, 2010, was introduced to provide a modern, comprehensive and risk-based regulatory framework for the insurance industry. Subsequent amendments have streamlined licensing and regulatory procedures and adjusted capital models to make it even more attractive for reinsurers to domicile in the jurisdiction.
"Cayman Finance is pleased to welcome Alesia Re as it joins the growing list of significant reinsurance companies selecting the Cayman Islands as their domicile of choice,” said Cayman Finance CEO, Jude Scott. “The excellence in service and strong collaboration across the industry, the Government, and the Cayman Islands Monetary Authority continue to position the Cayman Islands as the premier global financial hub for financial services including traditional and non-traditional reinsurance."
The Portfolio Insurance Companies (PIC) legislation, enshrined in the Insurance Law, 2010, provided a unique and robust structure for Alesia Re to conduct their reinsurance business. The PIC legislation provides a practical legal solution for Segregated Portfolio Companies (SPCs) to transact insurance business between individual cells to facilitate reinsurance and quota sharing. The PIC regime allows for governance flexibility, additional segregation of assets/liabilities resulting from a separately incorporated legal entity and an easier transition to a standalone captive than an unincorporated cell.
“After extensive due diligence, Alesia Re chose to headquarter and domicile in the Cayman Islands because of the jurisdiction’s unique collaborative approach, which provides for robust regulation with an attractive business environment,” said Richard Kearns, Alesia Re’s Chief Executive Officer. “The Ministry for Financial Services and the Cayman Islands Government, the Cayman Islands Monetary Authority, and Cayman Islands Finance, as well as its professional service community members, have been exceedingly supportive and have demonstrated a commitment to growing the Cayman Islands’ presence in the international reinsurance sector. They all recognized the specific needs of Alesia’s business model and worked with us as any issues arose. As the Cayman Islands’ insurance industry continues to expand, especially in the life and annuity sector, Alesia looks forward to building upon this superb framework and benefiting from Cayman’s long-term dedication to implementing industry best practices.”