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Matthew Bianchi

Dr. Matthew Bianchi describes how Malta has led the field in allowing Protected Cell Companies to flourish.

Protected cell companies (PCCs) and incorporated cell companies (ICCs) have become synonymous with Malta’s dynamic insurance regulatory framework. Malta is to date the only fully fledged EU member state to allow for the licensing and establishment of PCCs.

The PCC regulations provide for the creation of re/insurance, insurance management and broker cells within the PCC. The assets and liabilities of each cell in a PCC are segregated from each other as well as from the assets and liabilities of the company. The PCC, however, remains a single legal entity at all times.

The attractiveness of a PCC arises from its ability to segregate assets and liabilities in distinct cells, allowing the board of a PCC to establish a multiplicity of underwriting books within the company, with each cell owner at all times retaining full protection of their assets from any unforeseen financial problems of other cells or the core. The possibility of having each underwriting book and profits beneficially owned by the promoters of each cell has been the key factor to the rapid growth of the PCC sector in Malta.

Malta, Insurance, Protected Cell Companies, Malta Insurance Managers Association

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