The decision by the Prudential Authority (PA) to preclude Centriq Insurance from underwriting inward reinsurance business through a cell captive structure has rubbed the company up the wrong way, with it arguing the decision has far-reaching implications for SA companies with offshore exposure.

A cell captive is a ring-fenced special purpose vehicle housing insurance risks. There are two types of cell captives: first party cell captives that house the cell owner’s operational risks, and third party cell captives that house insurance products covering the risk faced by the cell owner’s customers...

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