Filinvest Development plans captive insurer in Cayman Islands for group risk management
Filinvest Development Corp. (FDC) plans to establish a captive insurance company in the Cayman Islands to cover risks for businesses within the Filinvest Group. The board approved expanding its subsidiary Filinvest Development Cayman Islands to include captive insurance operations, subject to licens
Filinvest Development Corp. (FDC) plans to establish a captive insurance company in the Cayman Islands to provide insurance coverage for businesses within the Filinvest Group, subject to regulatory approval.
In a disclosure to the Philippine Stock Exchange on Wednesday, the Gotianun-led conglomerate said its board of directors had approved expanding the business activities of its wholly owned subsidiary, Filinvest Development Cayman Islands (FDCI), to include captive insurance operations.
A captive insurer is an insurance company established to cover risks faced by its parent company and affiliated businesses, rather than primarily providing insurance to outside customers.
“This change is subject to completion of regulatory filings and approval, including licensing by the Cayman Islands Monetary Authority (CIMA),” FDC said.
The company said the proposed arrangement would strengthen its risk management capabilities, particularly in identifying potential exposures, preventing losses, and securing insurance coverage for its power business. Under the proposed structure, the group would manage its insurance requirements through a combination of risks retained by its businesses, coverage purchased from commercial insurers, and insurance provided by its captive insurer.
The arrangement would allow FDC to manage its overall risk costs, although the group would remain financially exposed to losses covered by its captive insurer. FDC’s board also authorised management to undertake the necessary steps to establish and implement the proposed insurance operations.
The company did not disclose the planned capitalisation of the captive insurer, the amount of insurance coverage it would provide, or a timetable for securing regulatory approval. At the local bourse on Wednesday, FDC shares closed unchanged at P3.81 apiece.
