This compares to a total of 797 licensed by the Guernsey Financial Services Commission (GFSC) at the end of December 2014, signifying a net growth of 19 so far this year.
Dominic Wheatley, chief executive of Guernsey Finance, said the figures reinforce the fact that Guernsey is able to provide solutions to meet a range of different risk management needs.
“The half-year figures are particularly impressive when you consider how they follow and maintain several years of strong performance in the sector,” he said.
The latest data showed that the new licensees had originated from a range of locations, such as the UK, Cayman Islands, Finland and Switzerland. While the range of businesses written included Insurance Linked Securities (ILS) and insurance lines covering property, After the Event (ATE) legal expense and longevity risk.
Guernsey Finance said the sector’s growth had benefitted from a growing reputation for risk management, particularly in relation to pension longevity risk. It said pension schemes are increasingly using Guernsey’s captive and cell company structures, such as Incorporated Cell Companies (ICCs), to hedge longevity risk for their defined benefit liabilities.
Guernsey’s reputation in this area gained a boost when the BT Pension Scheme transferred a massive £16bn of its liabilities to the Prudential Insurance Company of America using a Guernsey-based insurance company, BTPS Insurance ICC. The ICC was used to underwrite the longevity arrangements which will protect the scheme against costs associated with potential increases in life expectancy.
BTPS transferred longevity risk to the insurer, which in turn reinsured the longevity risk in the reinsurance market. Other schemes such as Towers Watson’s Longevity Direct structure have also followed a similar method.
Guernsey’s fund industry has also seen steady growth so far this year, with total funds under management increasing by £2.8bn to reach £222.2bn at the end of the first quarter.
