Segregated Portfolio Companies (SPCs)

A Segregated Portfolio Company (SPC) is a single legal company that can establish multiple segregated portfolios, or “cells,” within the same entity. Each portfolio’s assets and liabilities are legally ring-fenced from those of other portfolios and from the SPC’s general assets.

This structure allows different participants to operate within one company while maintaining separate risk exposures. SPCs are widely used in captive insurance, insurance-linked securities, investment funds, and structured finance transactions because they provide operational efficiency while preserving legal separation of assets and liabilities.

Portfolio Insurance Companies (PICs)

Building on the success of SPCs, Cayman introduced Portfolio Insurance Company (PIC) legislation in 2015. A PIC is a separate incorporated company established by a portfolio of an SPC.

Unlike a segregated portfolio, which is not a separate legal person, a PIC has its own legal personality, board of directors, contractual capacity, and ability to hold assets and incur liabilities in its own name. At the same time, it remains linked to the parent SPC structure and benefits from a streamlined regulatory framework.

PICs provide greater flexibility for insurance transactions that require a distinct legal entity—for example, where counterparties, regulators, financing providers, or joint venture participants prefer to deal with a standalone company rather than a segregated portfolio.