Captive meaning

In this issue: UK, EU and international regulators and bodies Prudential requirements Operational resilience Financial crime and sanctions Complaints, compensation and claims management Investigations, enforcement and discipline Regulation of derivatives Sustainable finance and ESG Banks and mutuals UK MiFID II Consumer credit, mortgage and home finance Regulation of insurance Payment services and systems Fintech and cryptoassets Dates for your diary Financial Services Enforcement Database New and updated content Daily and weekly news alerts Intraday news alerts LexTalk®Financial Services: a Lexis®Nexis community UK, EU and international regulators and bodies FSCS confirms unchanged levy for 2025/26 and provides early forecast for 2026/27 The Financial Services Compensation Scheme (FSCS) has issued its latest Outlook levy update for 2025/26, stating the levy will hold at £356m—as projected in May 2025—with no further levy anticipated for firms across the rest of this financial year. A preliminary view for...

What is a captive insurance company? A captive insurer is a fully owned subsidiary set up to manage and mitigate the risks of its parent and related entities. When the parent cannot secure appropriate cover from the traditional market for certain risks Premiums paid into the captive can generate savings for the parent or related parties Ability to place cover with reinsurers that the parent cannot access directly Addresses specific risks not available in the wider insurance market Funds the deductibles on policies purchased by the parent Investment income available to offset losses Improved control over claims Cover tailored to your needs Reduced reliance on commercial insurance Stabilisation of pricing Key takeaways A captive insurer is a wholly owned subsidiary that mitigates risk for its parent and related entities Benefits can include lower insurance costs, potential tax advantages, underwriting earnings, and tighter control over its cover Captive insurance companies...

In this issue: UK, EU and international regulators and bodies Regulated activities Authorisation, approval and supervision Prudential requirements Operational resilience Financial crime and sanctions Complaints, compensation and claims management Investigations, enforcement and discipline Regulation of capital markets Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation of derivatives Sustainable finance and ESG Banks and mutuals Investment funds and asset management UK MiFID II Consumer credit, mortgage and home finance Regulation of insurance Payment services and systems Regulation of AI in FS Financial Services Enforcement Database Daily and weekly news alerts Intraday news alerts New and updated content Dates for your diary UK, EU and international regulators and bodies Chancellor delivers first Mansion House speech Rachel Reeves, the chancellor of the exchequer, outlined proposals to pare back certain rules brought in after the 2008 financial crisis, aiming to channel more investment...

A private equity fund is a collective investment arrangement. Created and overseen by private equity firms, these vehicles channel committed capital into privately owned companies—whose securities are not traded on public markets—by purchasing existing issued securities or subscribing for newly issued securities... Private equity firms What is a private equity firm? In essence, a private equity firm is a team of investment professionals that deploys and oversees money provided by external investors through funds the firm establishes for private equity transactions... Independent: Typically founded and owned by senior members of the firm, they manage multiple funds and raise capital from varied sources, including insurance companies, pension schemes and high net worth individuals... Captive: Usually housed within large institutions such as banks, insurers and pension funds, they invest capital supplied by the parent institution and may, at times, be allowed to secure funding from third parties... What is a private equity investment?

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z This glossary provides helpful (re)insurance and underwriting definitions. For focused guidance on reinsurance terminology, see Practice Note: Reinsurance—essentials. A Accident An unforeseen or unintended event or incident that typically results in damage or injury (physical or financial) to the insured or a third party. Accidental damage Unintended or unexpected harm or damage caused to property or a person. Accidental death benefit Some life insurance policies pay an extra amount, over and above the original sum insured, if the insured dies because of an accident. Act of God (force majeure) An occurrence beyond anyone’s control, such as a natural disaster. Active underwriter The person with primary responsibility and authority to accept insurance and reinsurance risks on behalf of the members of a syndicate in the Lloyd’s market. See also Underwriter. Actuary A qualified professional who...

Power offtake arrangements In project-financed power generation schemes, a central document is the power offtake agreement. Commonly termed a ‘power purchase agreement’ or PPA, it is usually a contract between the generator and a licensed electricity supplier acting as offtaker for the plant’s entire output. PPAs of this sort are typically on the supplier’s standard terms, which most funders recognise. For our key resources on PPAs, see: Power purchase agreements and routes to market—overview. These agreements tend to favour the offtaker and securing substantial revisions is generally challenging. An alternative offtake model arises where the generator links directly to one or more local consumers via a ‘private wire’, with those customers purchasing electricity straight from the power station. In broad terms, ‘private wires’ refers to electricity distribution systems not owned or operated by a distribution network operator (DNO) licensed under section 6 of the Electricity Act 1989 (EA 1989). For ease, post‑liberalisation distributors known in the industry as ‘independent’ DNOs or ‘IDNOs’ are treated as DNOs. Private wire arrangements...