Purbeck Insurance Services, the UK’s only specialist provider of Personal Guarantee Insurance, has launched Purbeck Reinsurance Limited, a newly established captive reinsurance company domiciled in Guernsey.
The creation of Purbeck Reinsurance marks a major milestone for the managing general agent (MGA) market. It allows the business to take a direct share of insurance risk on the personal guarantee policies it provides to UK SME owners and directors. To date, Purbeck has protected more than 5,000 directors on £700 million of personal guarantee commitments.
Purbeck Reinsurance has been capitalised by the parent company and will assume a quota share of insurance risk ceded by its fronting insurer. This means Purbeck will now be directly “on risk” for a portion of claims arising from the guarantees it insures. By retaining part of the underwriting exposure, Purbeck aims to reinforce market confidence in its risk model and claims discipline.
Todd Davison, Managing Director of Purbeck Insurance Services, said: “The launch of Purbeck Reinsurance Limited is a clear statement of intent. By taking a direct share of the risk, we are demonstrating that we truly stand alongside the SME owners we support. When our clients succeed, we succeed — and when challenges arise, we step in to help prevent failure and thus help them avoid a claim. We’re immensely proud of the fact that with our help, seventy-five percent of businesses we support in financial distress trade out successfully rather than fail.”
Davison added: “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. Having capital at risk sharpens our focus on underwriting quality and claims management, which ultimately benefits commercial brokers, lenders and SME clients alike. This move underlines our ambition to play a more active role in managing risk across the SME funding ecosystem.”
The company’s decision to domicile the captive in Guernsey aligns with the island’s established reputation as a leading international centre for insurance and reinsurance. Guernsey’s regulatory framework, depth of expertise and track record in managing captive structures were key factors in the selection.
Purbeck said the development is a strategic evolution of its business model, aligning its financial interests more closely with the performance and resilience of the SME clients it protects. The move is expected to strengthen long-term stability in the specialist personal guarantee insurance market and provide a template for similar MGAs seeking to internalise a share of underwriting risk.
