Insurance Linked Securities

Gibraltar has a track record with the capital markets. In the late 1990s Gibraltar became a repackaging domicile for securitisation issues pioneered by a major European investment bank using a Gibraltar Special Purpose Vehicle (SPV). This was quickly followed by another bank with a 15 billion euro multi-issue secured note programme. Gibraltar became attractive for such SPVs due to its status as an English common law jurisdiction.

Gibraltar’s first ILS transaction, a € 100 million collateralised reinsurance, was finalised in April 2015.

In November 2015 Gibraltar announced a new class of protected cell company (PCC), the SPV PCC, targeted at the ILS sector. Providing all cells are fully collateralised the core capital required for a new established SPV PCC is £500.

Gibraltar’s Insurance Companies (Special Purpose Vehicles) Regulations 2009 and original Protected Cell Companies Act 2001 provide further choice for cat bonds, sidecars and collateralised reinsurance transactions. Gibraltar’s stock exchange, GSX, can list debt securities and funds for ILS transactions.