Jurisdiction(s):
United Kingdom

Captive insurance: structures, legal and capital considerations, protected cell options, and the evolving UK captives regime

Published by a LexisNexis Insurance & Reinsurance expert

Practice notes

What is a captive?

Captive insurance is a self-insurance approach. A captive insurance company, put simply, is an insurer or reinsurer owned by the ultimate policyholder (or reinsurance policyholder) whose exposures it covers. As a regulated (re)insurer in its home jurisdiction, a captive can accept risks like any other market participant; however, its defining feature is that it writes risks arising solely or largely from its corporate owner or within its wider group. HM Treasury notes that, in 2021, there were about 7000 captives worldwide, with premiums of roughly US$69bn.

Captive arrangements span the spectrum from straightforward to highly intricate.

The most basic model is a single company owning a single captive to which it insures its risks.
More layered designs may see risks ceded to a fronting insurer (typically an independent third party) and then reinsured back to the captive.
Alternatively, the captive may reinsure some or all exposures to external reinsurers.

Organisations usually deploy captive structures to satisfy commercial needs that the conventional insurance market cannot readily meet...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Hugo Laing

Debevoise & Plimpton LLP

Hugo Laing is a partner in the Debevoise & Plimpton Corporate Department and a member of the Insurance Group. Hugo advises on a wide range of transactions in the insurance market, including traditional M&A, Part VII transfers, distribution arrangements and risk transfer transactions. He also advises on key insurance regulatory issues, and on significant transactions in the wider financial institutions sector. Hugo is ranked as a Band 1 lawyer by Chambers UK (2026), which states “Hugo's knowledge of complex and innovative structures is second to none… (he) is incredibly experienced and has deep market knowledge.” He is also ranked as a leading partner by The Legal 500 UK (2026), which states “Hugo Laing is at the top of his game, very personable to deal with and unfazed by complexity - our first choice as lead transaction counsel on reinsurance deals....

Henry Dean

Debevoise & Plimpton LLP

Henry Dean is a corporate associate and a member of the firm’s Insurance and Financial Institutions Groups. His practice focuses on a broad range of financial services and products, with a particular focus on insurance, derivatives and risk transfer transactions. Mr. Dean acts for (re)insurers on a variety of insurance and reinsurance transactions including bulk annuities, longevity products, financial collateral structures and business transfers. He also advises on a range of regulatory and company law. Mr. Dean joined Debevoise in 2026. He graduated from the University of Sussex in 2007 and completed the GDL at the College of Law and the LPC at BPP University Law School.Mr. Dean was admitted as a solicitor of the Senior Courts of England & Wales in 2016...

Web page updated on 21/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...