SEGREGATED ACCOUNT COMPANY (SAC)
Segregated Account Company (SAC) is a company containing assets and liabilities that are legally segregated from the assets and liabilities of the company’s general account and the other segregated cell accounts. In Bermuda, this segregation can be obtained either via a private Act of the Bermuda Legislature or through the Segregated Accounts Companies Act 2000.
A SAC can be tailor-made to best serve the interests of the individual account owners and the company at large. In particular, SACs can be designed to:
- streamline and simplify administration for investment funds, insurance companies.
- asset holding companies and companies carrying on separate and distinct business ventures.
Advantages of insurance companies writing (re)insurance business through segregated cell:
- Reduced capital entry & administrative costs
- Less management time commitment required of the owner
- Easy to start-up and unwind
- Stepping stone to an owned captive
- Does not create a legal person distinct from the general account
- Investors are non-voting preferred shareholders and generally do not need to consolidate their investment in the segregated cell
- Not separately licensed