What is a Protected Cell Company (PCC)?

A Protected Cell Company (PCC) consists of a single legal insurance-licensed entity with two classes of shares:

  • The “core” shares held by the promoters of the cell captive with voting and distribution rights, and

  • The “cell” shares issued to each cell owner with cellular dividend rights.


PCC’s are an evolved form of rent-a-captive relying on statutory protection rather than the contractual protection offered by traditional rent-a-captives.

The assets of each cell are protected from the liabilities of other cells by legislation. Should the assets of a particular cell prove insufficient to meet its liabilities, the creditors may have access to the assets of the core, unless otherwise agreed, but never to the assets of any other cell.

In substance, a cell captive confers the same benefits of a wholly owned captive without the need to satisfy the minimum capital requirements of a fully-fledged insurance company.

Sustainable Risk Finance Solutions

A Protected Cell Company (PCC) is a sustainable Risk Financing solution because:

  • It can reduce your overall cost of risk;

  • It stabilizes your insurance program over time;

  • It is a retention vehicle suitable for your special risks;

  • You can insure risks that normally would be difficult to insure;

  • All captive cells are independent – you are only responsible for your own risks;

  • You can have a captive cell for just one strategic risk if it fulfils your needs, or you can concentrate all your risks, in one cell;

  • You don’t need to dedicate too much fixed capital to it;

  • You can turn a risk into a commercial advantage;

  • It’s easy to exit.

Initial assessment of the feasibility and relevance of the risk transfer into a cell captive.

Comprehensive report including financial projections, actuarial analysis and solvency requirements to define the best financial strategy for each project.

This phase includes the establishment of a full business plan and the presentation of the project to the local supervisory authority (MFSA) for authorization.

Once the cell is created, technical, accounting, financial and legal aspects are managed per agreed contract.