WDU 2023: Captive cells in focus

Analysis of data reported on the number of global captive cells in existence from the 2023 World Domicile Update

 

KEY NUMBERS

2021 individual cell captives: 2698*

2022 individual cell captives: 2931*

2022 new cell formations: Over 452*

2022 cell surrenders: Over 219*

Net difference: 233*

Growth rate: 8.64%*

Surrender rate: 8.12%*

*excludes cell data for Bermuda, Cayman and South Carolina

We received data from 28 domiciles that have captive cell structures on the number of individual captive cells housed in them, however this doesn’t include the significant cell domiciles of Bermuda, the Cayman Islands and South Carolina.

Nevertheless, there is much we can gleam from the cell data we have received. It’s clear US companies are fully embracing the benefits of forming a cell captive from the large number of new cell formations at many of the leading US domiciles.

North Carolina and Tennessee led the way with their number of approvals in the triple digits, but seven other US jurisdictions also had new formations of at least 17.

Across the 16 US domiciles that reported their cell numbers, there were at least 417 new cell licences approved. The total number of cell approvals in the other 12 international domiciles combined hits only 36, with almost two-thirds of these in Guernsey.

The size of cells varies widely between domiciles. North Carolina increased its lead as the largest US cell domicile in 2022, jumping from 666 to 720 cells, but this only amounted to a $1 million increase in cell premium, which rose from $689 million to $690 million.

In 2021, Delaware’s 365 captive cells wrote just $93 million, and Anguilla’s 17 cells just $1.8 million between them. By contrast, Vermont increased its number of captive cells by 37, and its cell premium increased by over $600 million, as its 419 cells wrote $2.5 billion in total.

Other smaller domiciles are also finding more premium is being written into cells. Connecticut’s nine cells wrote $38 million between them in 2021, and Arkansas’ one cell wrote $11 million.

Its premium rose to $12 million with the addition of a second cell in 2022. At the furthest end of the scale, we know just 11 cells in South Africa wrote R46.7 billion ($2.5 billion), proving the very different ways cells can be used globally.

12 August 2024
5-6 November 2025

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