WHY consider extending your insurance management capabilities into the E.U.?

  • Demonstrate your capability to manage your clients’ expansion into EU jurisdictions
  • Retain clients who might otherwise turn to managers with an international presence
  • Enhance your professional image through an extended geographical footprint
  • Open up management opportunities for reverse flow business from the E.U. into your home territory

 

 

WHY create your E.U. foothold in Malta?

  • Maltese captives and other insurance companies can write cross border risks in the E.U.
  • Malta is the only full E.U. member state with Protected Cell Legislation allowing the incorporation of direct insurance companies, reinsurance companies, captives, agents, brokers and insurance managers
  • EU and OECD compliant tax and financial regulations contribute to Malta’s credibility as a domicile of choice for a growing number of insurance companies and captives
  • Malta’s advantageous tax system delivers arguably the lowest effective corporate tax rate amongst EU captive domiciles
  • Local, highly qualified financial services staff ensure that you and your client’s business will be professionally managed

 

 

HOW can Abacus Risk Management Services Limited assist with your expansion into The E.U.?

"ABACUS", the only insurance manager in Malta incorporated as a Protected Cell Company has a dual focus business model;

  • To assist our own clients in setting up and managing Affiliated Insurance Companies (the Maltese legal term for captives) and other insurance or reinsurance companies on the island.
  • To provide an affordable solution for independent offshore insurance managers to add Malta to their list of domiciles through the establishment of an “Abacus” management cell or cells. In this way non-Maltese managers are able to service their clients as they expand into the EU.

 

 

WHAT other advantages will I derive from an Abacus management cell or cells?;

  • Simplified local registration and minimal delays in establishing a Maltese presence as the creation of a management cell within Abacus PCC would be deemed to be a registered Maltese insurance manager in its own right by virtue of the Abacus licence
  • Minimal capital requirements for the management cell;
    • own funds and other financial requirements are measured at the PCC level
    • the cell need only be capitalised to a level commensurate with business under management
  • The impact of unfamiliar practices and regulations are minimised by engaging the services of local Abacus experts
  • Limited or no need for local staff through the outsourcing of services to Abacus
  • No requirement for a separate registered address
  • No requirement for the establishment of a separate Board of Directors

 

 

HOW much does it cost to create a management cell within Abacus?

  • As own funds are met at the PCC level, a management cell can be created in readiness for future business with bare minimum capital. However, once business is secured, the cell will require to be capitalised at a level which will render it a viable business in its own right.
  • Abacus would normally require a minimum investment on the part of the cell owner for the creation of cellular assets in the form of preference shares. A one-time fee shall be payable in respect of the application, processing and creation of the cell.  An annual facility fee to meet the cell’s share of regulatory reporting and the like would be charged.

 

 

ARE there any other fees?

If Abacus performs services on behalf of the cell owner for his clients these would be charged at a cost agreed between the parties. Such services could include administration, IT, accounting, compliance, insurance portfolio management, reinsurance placement, investment portfolio management, and logistics.

 

 

HOW quickly could a Management cell be created?

The application form together with a scheme of operations will be processed by the Malta Financial Services Authority (MFSA) within a statutory period of 3 months

 

 

CAN we choose the name our cell(s)?

Yes. This is the choice of the cell owner subject to the approval of the MFSA

 

 

How would the administrative functions which Abacus would perform and those which the cell owner would provide for its clients be regulated?

By means of a “Tripartite Agreement” in which the duties and responsibilities of the parties are agreed

 

 

WHAT are the rights and restrictions on the preference shares issued to cell purchasers?

The following rights and restrictions apply to cell shareholders:

Rights:

  • Cell Shareholders may organise cell shareholder meetings
  • Cell Shareholders may vote at meetings of their class of cell shares and each cell share will have one vote at such class meetings
  • Cell shareholders of any class of cell shares shall be entitled to receive cellular dividends issued by the Company Abacus Risk Management Services PCC Ltd in respect of their relevant Cell



Restrictions:

  • Cell Shareholders of any class of cell shares shall have no voting rights at any meetings of the Company Abacus Risk Management Services PCC Ltd or at any meetings of holders of cell shares of other classes
  • The Board of Directors of Abacus Risk Management Services PCC Limited shall fix the date on or by which the relevant cell shares are to be redeemed in accordance with the needs or requirements of the cell shareholders

 

 

CAN Abacus assist with marketing and information materials for management cells?

Certainly. These are part of the extended service provisions which can be agreed

 

 

Once cell owners have built up their portfolio of business in Malta can they create their own management company?

Abacus would have no objection to this although a minimum period of collaboration is usually agreed between the parties at the outset