Cell Captives Structure

To ensure that the principles of a cell captive structure are understood correctly we include a short explanation of the key benefits of a cell captive arrangement.

A cell is a dedicated class of shares with our partner company that an entity can purchase and through which it can offer branded insurance products to its own customer base. Each cell is represented by a separate class of “A” ordinary shares with specified dividend rights.

Clients subscribe for these shares and the client as cell owner is afforded the conventional insurance capabilities enjoyed by a licensed insurer.

Distributable reserves are typically made up as follows:


  • Gross written premium

  • Less our partner company and administrator fee/commission

  • Less claims made and incurred

  • Less IBNR claims (incurred but not reported claims)

  • Less reinsurance payments

  • Plus reinsurance recoveries

  • Plus investment income

It is important to note that a cell captive insurer in South Africa has to be registered as such with the FSCA in terms and conditions laid down specifically by the Regulator to ensure the protection of cell owners.

Each cell is legally and financially watertight to ensure the financial integrity of the proposed programme. By partnering with our partner company, the cell owner has a clear financial incentive to profitably manage the risks covered by the programme.

The cell structure offers commercial certainties and protections in that the client retains its shareholding rights over the net assets of its own cell.

A cell owner does not have to be registered as a Financial Service Provider (FSP)

The cell enables the client / cell owner to sell its insurance product/s to their customer base under its own brand.

All share premium and distributable reserves within this ring-fenced structure shall remain invested on behalf of the cell owner for the duration of the cell captive’s existence.

Benefits From a Cell Captive Opportunity

Our partner company allows its 3rd party cell owners to operate their own cell facility which would function in a similar way to a normal insurance company. However, a key feature of our partner company’s service offering is the wide range of support services on offer to cell owners. Due to economies of scale, our partner company can offer these services at a fraction of the cost (included in the management fee) than what the cell owner would have paid if the cell owner had to source these services in the open market.

Due to the structure of their business model, they specialise in bringing adminstrators, reinsurers, distribution channels or other cell owners. A cell owner can therefore be guaranteed that they control the insurance value chain at all ends and are always getting the best value for money available.

What differentiates our partner company from competitors is their transparent approach to business in that the cell owner can account for every cent which is deposited into the cell facility. There are no hidden costs and all transactions are performed within the legal mandates. The cell captive facility therefore gives the cell owner the ability to access all underwriting and investment profit.

Get In Touch with Us!

Main Office


  • +27 87 820 0033

  • infor@frs-sa.co.za

  • Operating Days (Monday – Friday)

  • Operating Hours (9:00hrs – 16:00hrs)

  • 4 Perfecta Rd, Paarden Eiland, Cape Town, 7405