IRSL is a Rent-a-Captive (RAC) company, managed by
Independent Management Ltd. with the following features:

  • Privately owned Bermuda insurance company.
  • Comprises segregated accounts (cells).
  • Each segregated account forms a separate entity within IRSL. Each segregated account is a “company within a company”.
  • Exposures, assets and liabilities of each cell are “fenced” from other cells and from company owners.
  • The IRSL Act legally protects the assets of each cell from any claims from general creditors, or from other cells, at all times including upon liquidation.

The History of Segregated Accounts

RACs were first developed in the 1970s as a quick, simple means of setting up a self-insurance program in a captive. Use of a RAC avoids the time and expense of incorporating a separate company. Instead, the RAC rents its corporate structure, core capital and insurance licensing to each participant. Segregation of cells was achieved by the private contractual arrangements of each cell. However, there was no separate legal framework to support this and it was feared that such arrangements might not be effective against creditors in the event of liquidation.

In the 1990s the concept of private legislation to codify the segregation of accounts was developed in Bermuda and a number of private acts were enacted for RAC companies. During this period the structure of these private acts changed as the concept evolved. The IRSL Act is a result of that evolutionary process. In 2000, the Segregated Accounts Companies Act was established giving additional strength to the segregation of each cell.