Insurance Business Transfers

Under Part 23 of the Financial Services Act 2019 (the Act), a regulated Insurance Company will require GFSC approval before transferring its business to another firm. The purpose of this section is to explain the requirements and our approach to both inward and outward Insurance Business Transfers.

Approval Process

Inward Business Transfers

An inward business transfer refers to the transfer of a portfolio of contracts of insurance undertakings to a firm regulated by the GFSC. In such cases, we would expect the Home State regulator of the insurance undertaking to contact us at passporting@fsc.gi with the required information. 

We would expect to receive similar information as set out below in the Outward Business Transfer section.

Outward Business Transfers

An outward insurance business transfer refers to the transfer of a portfolio of contracts of insurance undertakings from a Gibraltar Regulated Firm to an Insurance Company regulated in another jurisdiction.

The Regulated Firm is to submit the following documents and information:

  • Application letter setting out the following:
    • The reason for the transfer.
    • The entities involved.
    • The particular of the transfer.
    • The proposed newspapers that the notices will be issued in.
  • Draft notice to be advertised in the Gazette;
  • Draft statement setting out details of the transfer;
  • Draft Instrument of Transfer;
  • Actuarial validation report*; and
  • The firm’s assessment on whether the actuarial validation report has been prepared by an individual with the relevant skills and experience.

*We will require the Actuarial Function Holder (AFH) to complete the actuarial validation report. The AFH should specifically provide an opinion on the following:

  • Whether there will be a material change in the solvency position of the firm as a result;
  • Whether there will be a change in the policy terms and conditions of the Transferring Policyholders as a result of the scheme;
  • Whether there will be a change in the options and benefits of the Transferring Policyholders as a result of the scheme;
  • Whether there will be a change in the service standards of the Transferring Policyholders as a result of the scheme; and
  • Whether there will be a material impact on the policyholders. 

The Actuarial validation report should also include:

  • MCR (for transferring and recipient company);
  • SCR (for transferring and recipient company);
  • Own funds (including broken down by Tier);
  • Details of the reinsurance programme in place (pre and post transfer);
  • Total number of policyholders by country;
  • Total value of GwP (gross and earned) to be transferred by country;
  • Loss ratio data for each country for the past three years;
  • Total assets by country and total;
  • Total liabilities by country and total; and
  • Total insurance liabilities and technical provisions by country and total for the company. 

We may require additional information dependent on the jurisdiction that the insurance business will be transferred to.

Please submit the required information and any queries via e-mail to authorisations@fsc.gi with the following information in the subject field: ‘Name of Regulated Firm – Business Transfer’. Paper copies are not required unless indicated by the Authorisation team. 

The GFSC may request a meeting to discuss the proposed business transfer as part of our assessment criteria.