Entering the alternative risk transfer market requires long-term commitment and thus Euroguard requires clients to become shareholders for a minimum of 3 years. Our experience reveals that this amount of time is required to see the true benefits from your risk financing programme. The shareholder agreement covers the following aspects:

• Calculation of the protected cell’s account experience;
• Calculation of preference shareholder’s fund and right to dividends;
• Investment management of protected cell’s funds;
• Maintenance of solvency margins;
• Financial reporting to the cell owner.
  

Euroguard prides itself on being able to provide a level of control and protection greater than that usually offered by other similar captive facilities through its extensive experience in managing cell captive operations world-wide.

Through the conversion to a PCC the contractual Protected Cell Agreement entered into between Euroguard and the cell owner is back by statutory provisions for legal –ring fencing between the cells.

Where appropriate, each cell or structured programme will be protected by reinsurance.

Classes of Business

Euroguard is not restricted to the class of business it can write and it is for this reason participants come from such diverse business backgrounds.

Termination of Arrangements

On termination of the agreement, the cell owner will become entitled to a final dividend declaration equal to the retained earnings of the protected cell, assuming the business is profitable.

When the agreement has been terminated, and provided all liabilities in the protected cell are extinguished, there will be a return to the preference shareholder of all retained earnings, including amounts previously set aside for reserves, against which claims were not made.

Upon the preference shareholder satisfying all claims against their protected cell, the amount originally invested as share capital and premium can be returned to the shareholder. This is accomplished by the redemption of the shares.

Quarterly Financial Reporting

All preference shareholders are supplied with quarterly financial and underwriting information pertaining to their protected cell. This information will include a balance sheet, income statement and notes thereto.

Direct Writing into the European Union.

Gibraltar is a dependent territory of the United Kingdom and, under the Treaty of Rome 1973, it forms part of the European Union (EU). Euroguard is able to access clients within the EEA directly, without incurring fronting costs.

Gibraltar has been recognised as an attractive offshore centre, particularly for captive insurance companies, for nearly twenty years. Their special link with the EU means they are able to offer facilities and solutions offered by very few other offshore centres.