What type of arrangement does a Segregated Cell Captive represent?

A Segregated Cell Captive represents a unique insurance arrangement designed to separate financial liabilities and assets among different groups, typically referred to as "cells." Each cell operates independently, allowing for distinct risk exposure and investment strategies without interference from other cells. This separation of liabilities ensures that the financial results of one cell do not affect those of another, providing a level of protection and clarity for each group involved.

The structure is particularly beneficial when multiple entities wish to utilize the captive insurance model but prefer to shield their financial concerns from one another. As a result, each group's liabilities are isolated, which aids in better risk management and regulatory compliance. Through this segregation, organizations can achieve customized insurance solutions while maintaining fiscal security against claims or losses related to other groups.