Compre transfers London business to new Malta PCC
Re/insurance legacy specialist Compre has received approval from the Maltese Financial Services Authority (MFSA) to establish a protected cell company (PCC) in Malta.
It has transferred its London business, London & Leith Insurance, to Malta, where it will be established as a PCC.
Compre CEO Nick Steer noted that the move to Malta was "not made in response to Brexit" and had been an intention long before the UK referendum, but he added that a further regulated presence within the European Union would not be a disadvantage for the company.
London & Leith Insurance PCC acquires portfolios of discontinued non-life insurance and reinsurance business. The company said that the relocation move will allow Compre greater flexibility to undertake transactions, and will enhance its ability to provide finality for customers transferring portfolios, or selling books of business or entire companies.
The establishment of London & Leith as a PCC enables it to form legally secure cells containing various assets and liability within a single corporate entity.
"Gaining permission to provide finality solutions out of Malta, and the ability to use individual cells for particular business, marks an important step in the next phase of Compre’s development," Steer commented. "This is the culmination of plans we have had for many years. With the added ability to transfer new and existing portfolios into Malta, Compre becomes a far more agile business."
Compre has also secured additional funds for further acquisitions via a revolving credit facility with the Royal Bank of Scotland (RBS). The facility considerably enhances Compre’s efficient borrowing capacity.
"We are in a stronger position to meet demand and capitalise on new run-off opportunities," Steer said. "Meanwhile, the agreement with RBS significantly boosts our firepower for acquisitions of a broader type and scale."