Purbeck Reinsurance launches in Guernsey
Purbeck Insurance Services, the UK’s only specialist provider of Personal Guarantee Insurance, has launched Purbeck Reinsurance, a newly established captive insurance subsidiary domiciled in Guernsey.
According to the company the creation of Purbeck Re is an exceptional development for the MGA market and marks a significant step in the company’s long-term commitment to support UK SME owners and directors. To date, the business has protected over 5000 directors on £700 million of personal guarantee commitments.
Purbeck Reinsurance has been capitalised by Purbeck and will assume a quota share of insurance risk ceded by the fronting insurer, meaning the business will now be directly “on risk” for a portion of claims arising from the personal guarantee insurance policies it provides to SME directors. This quota share arrangement means that Purbeck not only retains a meaningful proportion of underwriting risk, it reinforces confidence in its product design, underwriting discipline and long-term claims experience, the company said.
The move represents a strategic evolution for Purbeck, aligning its financial interests even more closely with the success and resilience of its clients’ businesses.
Todd Davison, managing director of Purbeck Insurance Services, said: “The launch of Purbeck Reinsurance Limited is a clear statement of intent. By taking a direct share of the risk, we are demonstrating that we truly stand alongside the SME owners we support. When our clients succeed, we succeed – and when challenges arise, we step in to help prevent failure and thus help them avoid a claim. We’re immensely proud of the fact that with our help, seventy-five percent of businesses we support in financial distress trade out successfully rather than fail.
“Our mission from day one has been to build a sustainable model that reflects our belief in responsible lending, informed risk-taking and better outcomes for directors. Having capital at risk sharpens our focus on underwriting quality and claims management, which ultimately benefits commercial brokers, lenders and SME clients alike. This the move underlines our ambition to play a more active role in managing risk across the SME funding ecosystem.”
Purbeck added that the decision to domicile the captive in Guernsey reflects the island’s established reputation as a leading international centre for insurance and reinsurance, offering robust regulatory oversight and specialist expertise in captive structures.
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