30 March 2020EMEA analysis

France approves its first new reinsurance captive in 20 years

The French Prudential Supervision and Resolution Authority has approved a reinsurance captive in France, for the first time in nearly 20 years.

Worldline Group is launching the captive, which will be only the fourth reinsurance captive in France. Gras Savoye Willis Towers Watson (GSWTW) is advising on all aspects of the process, from feasibility to authorisation, including all the steps involved in creating the reinsurance captive.

Worldline analysed a number of different jurisdictions for the captive, but settled on France “thanks to GSWTW's experience in managing captives in France.” The captive will help Worldline navigate the tougher insurance market environment, which was leading to a review of existing arrangements, GSWTW said.

Laurent Bonnet, head of captive and alternative risk transfer at GSWTW, said: "The captive is an essential tool for a group like Worldline. It offers them a key device in their risk management and a weapon for negotiating with insurers, while providing operational staff with a suitable solution.”

Bonnet predicted Worldline will be followed by other reinsurance captive launches in France in coming months.