Guernsey is new home for biggest independent in captives

THE largest global independent insurance manager has moved its head office from London to Guernsey.

Commerce and Employment minister Kevin Stewart, left, and Kane chief operating officer Clive James outside its Queen’s Road headquarters. 1290340
Commerce and Employment minister Kevin Stewart, left, and Kane chief operating officer Clive James outside its Queen’s Road headquarters. 1290340

THE largest global independent insurance manager has moved its head office from London to Guernsey.

Kane specialises in captive insurance, but also offers insurance linked securities and life, pension and investment-related products.

The company, founded only a few years ago primarily to secure business in the Middle East, has grown rapidly through acquisition, primarily the purchase of HSBC’s captives operation, a deal which was completed in June 2011.

This has enabled Kane to set up operations in the major captive domiciles of Bermuda, Cayman, Vermont, South Carolina, Dubai, Malta and Guernsey. It employs more than 100 staff and has more than 350 clients worldwide.

‘Our move to Guernsey demonstrates Kane’s commitment and investment in the island,’ said chief operating officer Clive James.

Comments for: "Guernsey is new home for biggest independent in captives"

More Local Than You

I would bet my car that Kevin Stewart would be unable to describe what a captive insurance company does.

Cher Eugene

MLTY

Nice crack about Kevin.

Do you know what a P&I club does?

bella

more people arriving in our overcrowded island.

kevin

And the company probably won't pay any tax

SaintsBay

Bella

There is no evidence that the company will be any more than a "Brass Plate" therefore its affairs could be administered by no more than one or two persons, possibly already employed by a another company already here.

It is a tax reduction move.

Very unlikely to increase "local" employment and of course will contribute very little due to Zero-10.

Image over substance.

bella

saintsbay. so why celebrate having them here

Backchat

Not really investment, more like what you can use us for!

Phil

"Brass plate" companies, are you for real? That simply doesn't happen any more.

SaintsBay

Phil

Yes - figure of speech.

The company employs 100 persons over 7 locations (including Guernsey)work out the average headcount for yourself - not going to soak up much of the growing unemployment here.

Bela - got to have some "good news".

Phil

Saints Bay

Ah, figure of speech, my apologies for not knowing what you were thinking, as opposed to saying, my mindreading skills are not what they could be.

So do you have any evidence of this "one or two" employees theory, or are you just surmising/guessing?

SaintsBay

Phil

Well 100 persons worlwide and allowing for its head office relocating my "guess" is for a very small number (if any) NEW jobs for LOCALS.

I applaud Dep Stewart in getting out there but we need to see incoming business generating local jobs for scores of newly unemployed or those on contracts that are coming to an end, or those not signed on but getting by on their redundancy pay outs.

Speaking with those in the financial sector (as I do) there is much confirmation that clients are migrating to Cayman, Mumbai etc or being sourced out by the Guernsey front offices to Mumbai, Delhi, Mauritius etc.

Ask Barclays.

Also in some cases although a fair degree of marketing is being done in China and India by

local firms very little or nothing is being secured.

Did you see the Digby-Jones report and thread on here the other day?

Well done Kev for this and it may be a beginning but lets not kid ourselves about the future.

(Real)unemployment is growing at an alarming rate with one deputy describing it as "acceptable" on the Sunday-Phone in recently. The official figures do not represent the true picture.

What is your view of the employment landscape both now and in the coming,say, five years ?

Phil

I think that the unemployment problem will grow significantly, there have been many cases of well know local finance firms laying off dozens of staff yet the media coverage has been virtually non-existent, I wonder why that is?

Looking to new markets is all well and good, provided that we are able to service those markets in an efficient and well regulated way, and not get bogged down in a quagmire of red tape and banks not able to adapt to an ever changing client base that will create new challenges to the over-onerous compliance requirements.

GM

Saints Bay

It may be more a case of new work coming in to maintain existing jobs than to create (net) new jobs.

Phil

Very well said.

Grala

The headline to this story makes it look like we're running some kind of slave trade...

Ray

On a slightly different new business topic how is the register of personal rights coming along? ( Can't remember its proper title )

Are we into double figures yet?

SaintsBay

Phil

We appear to be singing from the same hymn sheet.

My concern is that there is too much reliance on the finance sector, in its various guises, to come up with a solution.

It may be in fact that it is the problem - there is an almost deperate reliance on finance or digital new world and silicon roundabout forms of employment but in fact this flies in the face of what is required.

These companies would be low impact in terms of head count, especially amongst the local unemployed.

They would also require a form of inducement -tax break ? Well under Zero-10 they would pay little to no tax.

Would C&E seek to give them grants to come here - how does that contribute?

The focus and publicity on tax avoidance (not evasion)that is topic du jour at the moment will most likely keep companies away from the CI no matter how well regulated we are.

There are bad guys out there - ask HSBC who were fined around $1 billion recently for their activities regarding Mexico and Iran.

Good luck to Kane but what is the real contribution to our unemployed.

I cannot see Chinese or Indian firms rushing to place their business in areas that are under scrutiny no matter how "clean" we are.

It all comes back to how are we going to get our unemployed back to work - and I refer to the growing number persons that are also either without work or for example on short term contracts that are terminated at a minutes notice. A leading merchant bank will cut loose several on 31st Dec or in the first week of Jan 2013.

The withdrawl of LVCR contributed to a significant rise in registered unemployment, possibly reduced by guest workers being amongst those made redundant. Have the local persons amongst those affected all gain established and secure employment?

The fact is that once a manufacturing company such as Tektronix employed up to 700 persons during its heyday it is very unlikely that another, "mass" employer would place it's manufacturing and subsequent distribution at risk of transport delays.

Sorry - perhaps I rambled but my concerns are real.

Too many deputies have a naive faith in the finance sector - they need to wake up and grasp the real effect of this creeping unemployment and start to put contingency plans in place.

If there was sudden mass unemloyment - say 2000 to 3000, how would people pay mortgages? Would the banks foreclose thus triggering a crash in house prices.

What is the policy of requesting licence holders who lost their jobs to return to whence they came?

Who would have thought 5 years ago that there would be soup kitchens in Athens.

Stil - there are plenty of horses out there if we get really hunger.

A horse tax - now theres an idea.

Herbert Roth

I've always thought an obvious way to make a start on the unemployment problem would be to replace the dole with part-time employment at States Works. Instead of paying people to do nothing full-time, pay them the same to do something part-time. It's not going to solve the unemployment problem but it might teach some people new skills whilst enabling them to contribute towards their community and still have the time to look for a full-time job.

Sampson

Unemployment is a relatively new term on this affluent island but looks likely to feature more regularly on the agenda.

There was an interesting 150 page report by Oxford Economics done earlier in the year for C&E. with all sorts of ideas and recommendations. I wonder if it got any attention or was it consultants' fees down the drain..