Companies participating in an East Isles Re insurance program are not owners or investors in East Isles Re or in the segregated accounts associated with their program. East Isles Re structures each program so that the rights and obligations of each participant are defined in the program’s Segregated Account Program Agreement (SAPA). A participant signing a SAPA is a counterparty to its designated segregated account and is entitled to all of the rights and subject to all of the obligations as described in the SAPA.
East Isles Re’s management maintains a high degree of control over the assets and liabilities linked to a segregated account. Participation in an East Isles Re program is not intended to mirror the rights and control that a participant would have in its own wholly owned captive. Rather, it is intended to be a simplified way to participate in a group captive program. The decreased control is the trade-off for a greatly simplified entry and exit process.
East Isles Re encourages companies seeking a higher degree of control to consider forming their own wholly owned captive. Many companies start in a segregated account program and migrate to a wholly owned captive in later years. East Isles Re will work with you and help transition you from East Isles Re to a wholly owned captive.
SEC “No Action Letter”
Read East Isles Re’s submission and the SEC’s response.
East Isles Re has sought and received a “No Action Letter” from the Division of Corporate Finance of the United States Securities and Exchange Commission (SEC).