26 February 2015Services

Cayman incorporates first ever PIC

The Cayman Islands has incorporated its first portfolio insurance company (PIC), following new legislation.

Legislation allowing Cayman SPC insurers to form PICs, the Cayman model for incorporated cell companies, was brought into force on January 16, 2015.

AARIS Insurance Company established by California-headquartered, Ascension Insurance Services, has established AGG 1 PIC to allow a portfolio of agri-business clients to participate as a group in a risk transfer mechanism for their workers compensation coverages.

Ascension was assisted by Willis Management (Cayman), Cayman law firm Solomon Harris, and US law firm, McDermott Will & Emery.

“We’re thrilled to have the honour of being the first to establish a Cayman PIC through AARIS,” said Joe Tatum, Ascension Insurance Services president and chief executive officer. “The formation of AARIS creates unique and unprecedented opportunities for us as an insurance brokerage to provide even greater service through alternative risk management solutions, to both our existing and new clients.

“As we continue our expansion, PICs are a groundbreaking offering that will be an immense value-add, not just to our agri-business partners, but to all the clients across multiple industries we do business with, now, and into the future.”

Stephen Gray, managing director of Willis Management (Cayman), added: “We have always been a strong supporter of PICs and are delighted to have been involved in forming the very first one. A PIC provides the ideal solution for Ascension’s business objectives.”

Paul Scrivener, partner and head of the insurance group at Solomon Harris, said: “It is really encouraging to see the first PIC formed so quickly after the PIC legislation came into force. Having been very closely involved in the development of the legislation and spoken about it with many industry participants, I was confident that there was a real business need for it. Hopefully, this will be the first PIC of many!”