Thomas Miller Captive Management will manage the Isle of Man’s first insurance special purpose vehicle (ISPV) after the Financial Services Authority approved a licence for Ilex Global Reinsurance Company ISPV Limited in February.
The jurisdiction has had legislation and regulatory framework in place to facilitate ISPVs since 2015, but to date had not the commercial market had not utilised the structure.
Appleby provided legal advise on the application and formation, which was approved in two and a half days after submission.
SPVs have commonly been used in Bermuda, Guernsey and the Cayman Islands to facilitate insurance linked securities (ILS) transactions such as catastrophe bonds and collateralized reinsurance.
“As the first application for an insurance special purpose vehicle authorisation in the Isle of Man, this was always going to be a complex matter that required expert navigation through a range of novel legal issues,” said Ross Dennett, chairman of Thomas Miller Captive Management.
“Appleby’s support and guidance through the process has been absolutely critical. They are skilled at distilling complex legal/regulatory issues into practical and user-friendly advice, and their responsiveness is first-class.”
Garry Manley, partner at Appleby, said: “We are very proud to have assisted Ilex and the Thomas Miller team on this ground-breaking matter.
“Obtaining the first authorisation of its kind was always going to be a challenge, but we were able to draw on Appleby’s vast knowledge of the global insurance-linked securities market to make the process as efficient as possible for our client.”
Manley described the FSA as “pragmatic and approachable throughout”.
Alan Rowe, senior manager at the Isle of Man Financial Services Authority, said: “The speed of turnaround reflects the applicant’s lead-up preparation, supported by legal advice, and the quality of the completed application.”