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Investing in the Isle of Man

Financial security from being based in the Isle of Man.


It is important to know your savings and investments are protected and safeguarded. As we are based in the Isle of Man, which is recognised as being a well-regulated offshore Finance Centre of excellence by the International Monetary Fund, you benefit from getting three layers of protection that we must provide.

1. Segregation of Assets. Under the Isle of Man Insurance Act 2008, companies in the Isle of Man are required to ring fence 100% of customers’ assets by holding them in the long-term business fund (LTBF). We can only use the assets in the LTBF to meet the claims and long-term liabilities of customers. They cannot be used for any other purpose. Being segregated or ‘ring-fenced’ in this way means that if the company was unable to meet its liabilities, our customers’ assets are protected and our responsibilities to our customers take priority.

The Act also dictates that we are legally obliged to submit independently audited annual solvency reports to our regulator. More than 98% of our products are ‘linked‘, which means the liabilities fluctuate in line with market performance. Non‑linked liabilities (such as pure life cover) are covered by statutory reserving and valuation rules and the use of reinsurance.

2. Solvency and Reporting. We have  to hold a minimum solvency margin of 0.25% of the value of liabilities for ‘linked’ business (i.e. portfolio bond or regular savings plan) and 1% value of ‘non-linked’ business (i.e. term assurance).  The solvency margin is the difference between what we own (our assets) and what we owe (our liabilities). We currently operate at 4.56 times the required solvency margin. (as at 31.12.16)

3. Compensation Scheme. If a shortfall in the assets backing our liabilities were to occur, our customers are protected by The Life Assurance (Compensation of Policyholders) Regulations 1991,  This provides customers with up to 90% protection if were unable to meet our liabilities. 

You should be aware that these investor protection and compensation schemes only apply if we cannot meet our liabilities. The schemes do not cover any losses incurred through a fall in value of investments held in an investment-linked policy

With it’s wealth of experience, its excellent communications and its central location within the British Isles, it is not surprising that a number of the world’s leading international financial companies are based here.