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Cayman Islands reinsurance: CIMA captives, cells, and ILS vehicles

The Cayman Islands are a captive and ILS-vehicle jurisdiction under CIMA, not a second Bermuda with palm trees. Cells, sidecars, and cat-bond issuers live on documents. Reinsured.AI does not hold a Cayman licence. This page is board packs, offering documents, and why a cited collar beats a fundraising slide.

The Cayman Islands are a vehicle jurisdiction. Captives, segregated portfolio companies, and ILS issuers sit under the Cayman Islands Monetary Authority. That is a different product from Hamilton Class 4 third-party paper, even when both islands talk about catastrophe and both use English-law documents. This page uses CIMA flavour. It does not invent a Cayman licence for Reinsured.AI, and it does not list a Harbour Drive or Camana Bay office as if we were a licensed insurer or a fund.

Placing customs are board-driven. A US or Canadian parent forms a Cayman captive or rents a cell. A fronting insurer in the US admitted or surplus-lines market issues the policy. The captive reinsures the front. Bordereaux flow from the front to the cell. Separately, an ILS transformer or cat-bond issuer may take a slice of a defined portfolio. Those are different contracts. Mixing them in one "Cayman CAT" workbook because the service provider shares a conference room is how you double-count collateral. The Sidecar Agent is the named worker for vehicle documents, portfolio definitions, and the conflicts between a term sheet and the reinsurance agreement.

Treaty reinsurance is still the right hub when the captive writes a quota share of the parent's construction book. Facultative reinsurance is the right hub when the cell takes a named ACME tower the parent's treaty threw out. The brokers hub is how the front and the captive should see the same pack version. Do not let the parent email a new SOV to the front and not to the cell.

Cells are not Class 4 commercial paper

A segregated portfolio or cell company isolates assets and liabilities by statute in ways your counsel already knows. Ops still has to keep the files isolated. Bordereaux for cell A must not be posted to cell B because both mention ACME Construction Ltd. If the cell business plan excludes US coastal wind and the inbound fronting bordereau still contains Florida warehouses, those rows are exceptions. They are not "close enough for the board."

CIMA returns and business-plan changes are the vehicle's. This product does not file them. The honest connection is inputs: the reinsurance agreement, the fronting contract, the collateral, the portfolio definition. A slide that says "fully funded" without the trust or account statement is not a field. Reinsurance AI is the argument for spans inside a board pack.

ILS in Cayman — cat bonds, sidecars, collateralized covers — adds offering circulars, indentures, reset files, and calculation-agent reports. A traditional captive recovery is a reinsurance recoverable against a front. An ILS recovery is a trigger and a calculation. Do not net them because both say hurricane. See events if the same managers fly to Monte Carlo; the offering document still governs.

This page will not give tax advice, will not mention a 953 election as a product feature, and will not invent a listing venue.

Board packs and offering documents

Typical Cayman-vehicle files:

• Captive or SPC constitutional documents and cell participation agreements
• Fronting agreements and the underlying policy forms
• Reinsurance agreements, including collars, corridors, and loss corridors if used
• Board packs: experience accounts, bordereaux, large-loss listings
• Collateral statements, trust reports, or account confirmations
• For ILS: offering circular, indenture, reset, calculation-agent report
• CIMA or registered-office exhibits as documents to extract from, not as filings we submit

A collar or corridor on a captive quota share is a formula. If the board pack paraphrases it and the agreement cites a different band, the agreement wins. Show both pages. The Bermuda page talks about Class 4 collars on third-party cat. Here the collar is often a parent-captive sharing formula. Do not copy-paste Hamilton language into a George Town cell because both used the word collar.

Year of account still matters. A US front reporting on a calendar year and a Cayman cell whose business plan assumed a 1 June wind year will disagree on which hurricane belongs where. Stop and cite the two incepts.

The illustration used here is the Bermuda cat-specialist pricing illustration. It is a labelled ILS and cat-file illustration, not a Cayman customer, not a CIMA letter, and not a logo wall.

ACME Construction Ltd inside a Cayman cell

Walk a fictional file. ACME Construction Ltd, domain acme.example, is a US contractor whose parent rents Cayman cell B to reinsure a fronted US builders-risk book. The cell agreement names occupancy construction, territory USA excluding Florida wind, share 50 percent, currency USD because the front is US. The inbound bordereau from the front includes a Miami warehouse ACME started last quarter. The board pack experience exhibit uses last year's corridor. Endorsement 1 of the reinsurance agreement removed the corridor. The ILS sidecar that takes 20 percent of "ACME US construction" uses a portfolio definition that still includes Florida.

Cell B has a territorial exception, a stale corridor, and a sidecar that does not match the cell. A service provider who books one ACME total for the board has guessed. The pack should show the Miami rows as exceptions, the endorsement-1 corridor deletion, and the sidecar mismatch. Do not average Florida into "USA excluding Florida" to make the exhibit look smooth.

This page will not invent a CIMA licence. It will not publish a captive ROI. It will not display vehicle logos. Humans still sit on the board and sign the offering. Software can cite the cell agreement, the fronting bordereau, and the sidecar definition that still thought Florida was in.