Protected Cells

Interest in Protected Cell Companies (PCCs) has been consistent and Malta is now seeing an increased interest in forming insurance cells within existing PCCs.

The purpose of carrying out insurance activities from different cells is to segregate cellular assets and liabilities and allow different owners with varying interests to participate in one company.

Types of Cells that can be set up in any combination within a PCC

Captive Cell: Commercial/affinity groups looking for a captive risk financing vehicle

  • Lower access point to captive solution
  • Special purpose applications
  • Access to reinsurers & specialist risk-bearers

Fronting Cell: Captive owners wishing to reduce EEA fronting costs

  • Cells in Malta can be used as fronting facilities
  • Fronting cell reinsures most/all of the risk
  • Reinsurer could be a non-EU captive

Third Party Writing Cell: Any business planning to sell insurance to third parties

  • EU cells offer direct access to European market
  • Policyholder Protection Ensured
  • Possible products include bolt-on products to non-insurance sales, short tail risks such as extended warranty, property damage, theft, marine cargo and travel cancellation. Longtail risks also possible

Benefits of Protected Cells in Malta

  • Low Capital Requirements
  • Direct Writing into Europe through the PCC
  • No Setup of Separate Company
  • Easier Access to ‘Captive’ Solution
  • Cell Assets Segregated
  • No Board of Directors
  • Reinsurance for Smaller Entities
  • Favourable Tax Regime
  • Shared Administration

Key Features of a Protected Cell

A protected cell in Malta allows cell owners to:

  • Insure own risks in EEA
  • Sell insurance to third parties in EEA
  • Insure on non-admitted basis risks globally where allowed
    • Reinsure risks outside EEA
  • Complies with EU directives through PCC core capital
  • No absolute floor minimum capital requirements
  • Minimum capital is calculated in accordance with MFSA Guidance Note on Solvency Requirements in relation to PCCs
  • No Fronting Required for EU/EEA Risks
  • Reinsurance access for smaller insurers
  • Lower Running Costs vs. Stand-Alone companies
  • Insulation from other Cells and the Core, as a cell has its own income and expenses.
  • Cellular dividend & tax independence

When cell liability arises:

  • Assets of the cell primarily used
  • If insufficient PCC’s core assets secondarily used (under certain conditions)
  • Use of assets of other cells prohibited


Download your copy of the Protected Cell Companies Factsheet