Purbeck Insurance Services has formed a captive insurance subsidiary, Purbeck Reinsurance Limited, domiciled in Guernsey. The UK-based managing general agent specializes in personal guarantee insurance for small and medium-sized enterprise owners and directors.
The newly established entity has been capitalized by Purbeck and will assume a quota share of insurance risk ceded by the fronting insurer. Under this arrangement, Purbeck will be directly on risk for a portion of claims arising from personal guarantee insurance policies issued to SME directors.
According to the company, the quota share structure means Purbeck retains a portion of underwriting risk. The business has protected more than 5,000 directors on £700 million of personal guarantee commitments to date.
Todd Davison (pictured above), managing director of Purbeck Insurance Services, said the captive launch represents a commitment to the SME market.
"By taking a direct share of the risk, we are demonstrating that we truly stand alongside the SME owners we support," Davison said. "When our clients succeed, we succeed – and when challenges arise, we step in to help prevent failure and thus help them avoid a claim."
Davison noted that 75% of businesses the company supports during financial distress trade out successfully rather than fail.
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He added that having capital at risk enhances the company's focus on underwriting quality and claims management. Davison said this approach benefits commercial brokers, lenders and SME clients.
"Our mission from day one has been to build a sustainable model that reflects our belief in responsible lending, informed risk-taking and better outcomes for directors," Davison said.
The managing director indicated the move reflects the company's goal to take a more active role in managing risk across the SME funding ecosystem.
Guernsey was selected as the domicile for the captive due to the jurisdiction's position as an international center for insurance and reinsurance operations. The island tied with Luxembourg for the largest number of European captives in 2024, with 197 each. However, Guernsey recorded a net decline of seven entities that year after 17 surrenders offset 10 new formations.
The decision to domicile offshore comes as the UK prepares its own captive framework. In July 2025, Chancellor Rachel Reeves announced the government would introduce a domestic captive insurance regime by mid-2027 as part of post-Brexit financial services reforms.
