| Captive (Single Parent) |
"Cell Captives" (Protected / Segregated) |
Generally wholly owned subsidiary company funded by paid up capital. In some cases, a combination of part paid capital, Letter of Credit or guarantees may be used.
|
Can be part of parent owned "cell captive", or rented from third parties. If rented, risk gap usually fully collateralised with cash or Letter or Credit.
|
Self managed or third party management company with board of directors, including a simple majority of locally domiciled directors.
|
Generally third party management companies with all directors' fees and running costs included in annual management fees.
|
Board meetings required between 2 - 4 times per year.
|
No board meetings for Cell owners.
|
Separate audit required.
|
General audit fees etc. included within annual management fees.
|
Can provide loans back to parent, provided necessary solvency margins are maintained.
|
Loans back available subject to solvency margins and manager's approval.
|
Can enter into contracts in its own right.
|
Contract through "cell company owner".
|
Board selects dividend policy.
|
Dividend policy strictly determined by directors' of "cell company owner" in conjunction with parents' wishes.
|
