Luxembourg-based captive manager Sogecore in April 2019 acquired Abacus Risk Management Services in Malta.
Abacus manages and operates captives and insurance carriers on behalf of their owners; it also offers Protected Cell Company (PCC) services.
What is a PCC?
A PCC is essentially a slice of a single insurance or reinsurance carrier that operates separately from other such slices in the same carrier. The carrier’s license and support functions are shared among several PCCs but the balance sheet and the P&L of each PCC are kept separate from each other. A PCC can be established quickly and with minimum overhead compared to a fully-fledged insurance or reinsurance company. A Malta-based PCC can be a convenient way to enter the E.U. market: a Maltese PCC is set up, then distributes its products across the E.U. using E.U. passporting rights. It does not have to create legal entities, lock up capital, and obtain licenses in several countries. Nevertheless, using a PCC means delegating substantial authority to the PCC’s operator; both the operator and the PCC itself need to be monitored closely.
Sogecore is owned by French financial conglomerate Burrus, also the owner of mid-sized French broker Diot, a member of the global Lockton and EOS Risk broker networks.
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