Chubb has three wholly owned companies designed to provide risk financing strategies to ACE clients seeking profits and reduced costs from their risk management practices.
Two of those afford clients the benefits of a captive programme without the long-term level of management commitment, time and cost needed to form their own captive:
- Paget Reinsurance Ltd. (Paget Re), domiciled in Bermuda, is a licensed Class 3 insurer formed under the law of Bermuda’s Segregated Account Cell legislation. As a full-service segregated account company, Paget Re rents its capital, license and administrative infrastructure to clients for an annual fee.
- Pembroke Reinsurance Inc. (Pembroke Re) is domiciled in Delaware under the State’s Protected Cell Company legislation. Pembroke Re affords clients the choice of retaining their captive risk and premiums within the jurisdiction of the United States.
Known by different names in different jurisdictions, a segregated account company and a protected cell company are synonymous. Namely, each company enjoys statutory laws enabling complete separation between each participating programme’s assets and liabilities.
Since 1999, Chubb has provided businesses with the option of testing the advantages of captive insurance company risk financing without committing to the capitalization requirements and administrative costs associated with establishing and operating their own captive insurance company.