Application to write motor insurance in Jersey

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A decision made (16.02.06) to authorise Southern Rock Insurance Company Limited to write motor insurance in Jersey through brokers.

Subject:	Application to write motor insurance in Jersey – Southern Rock Insurance Company Ltd.
Decision Reference:	MD-HA-2006-0013	Exempt clause(s):
Type of Report (oral or written):	Written	Person Giving Report (if oral):
Telephone or e-mail Meeting?		Report File ref:		HAD/DVS 1
Written Report – Title:	Motor Traffic (Third Party Insurance) (Jersey) Law 1948 – Southern Rock Insurance Company Limited	Written report – Author:		Mr N.A. Woodroffe Director, Insurance, Jersey Financial Services Commission
Decision(s): To authorise Southern Rock Insurance Company Limited to write motor insurance in Jersey through brokers.
Reason(s) for decision: The company meets the legal requirements for authorisation contained in the Insurance Business (Jersey) Law 1996 and the Motor Traffic (Third Party Insurance) (Jersey) Law 1948. The Jersey Financial Services Commission sees no reason for authorisation not to be granted.
Action required: The Executive Officer, Home Affairs, to write to the Jersey Financial Services Commission and inform them of the decision.
Signature: (Minister/ Assistant Minister)			Date of Decision:

Application to write motor insurance in Jersey - Southern Rock Insurance

MEMORANDUM

To:

Minister for Home Affairs

From:

N A Woodroffe

Director, Insurance

3 February 2006

Motor Traffic (Third Party Insurance) (Jersey) Law 1948

Southern Rock Insurance Company Limited

The Commission has received an application from Southern Rock Insurance Company Limited to write motor traffic insurance business in Jersey. The Company is authorised to write motor insurance business by the Financial Services Commission in Gibraltar. The Company has included a copy of its latest management accounts, its Home Regulator Return and its Certificate of Membership of the Motor Insurers’ Bureau in the United Kingdom with its application.

Southern Rock Insurance Company Limited was incorporated in Gibraltar on 25 October 2004 and is owned by Southern Rock Holdings Limited. The Company was authorised by the Financial Services Commission in Gibraltar to carry on motor insurance with effect from 12 January 2005. The FSA has also granted the Company authorisation to carry on motor insurance in the UK under the EU passport agreement that allows freedom of insurance services within the EU.

The management accounts for the period ended 31 December 2005 reveal net annual premiums of £4,041,956 and that net claims paid in the same period amounted to £2,646,258. The Company held reserves for possible future claims of £1,363,240. It was required to hold minimum additional reserves for solvency under its home regulator rules of £2,344,000, yet it actually held £3,518,000 based on the solvency calculation as at 30 September 2005. Southern Rock Insurance Company Limited meets all the financial regulatory requirements of the Financial Services Commission in Gibraltar.

The Company is seeking authorisation to write motor insurance in Jersey, through brokers. On the basis of the information received, it meets the legal requirements for authorisation contained in the Insurance Business (Jersey) Law 1996 and the Motor Traffic (Third Party Insurance) (Jersey) Law 1948.

The Financial Services Commission cannot therefore see any legal reason why authorisation should not be granted. The Minister is hereby asked to consider the application from Southern Rock Insurance Company Limited and to grant formal consent if she sees fit.