PARIS (Reuters) – La Française des Jeux (FDJ) is preparing its reinsurance captive domiciled in France in order to be able to provide internal reinsurance coverage on some of its risks and optimize its insurance policy, two sources told Reuters.
A reinsurance captive is a subsidiary of a group whose aim is to provide reinsurance coverage relating exclusively to the risks of the company or companies to which it belongs through the constitution of reserves.
France has strengthened the attractiveness of the system by modifying its tax framework in the Finance Bill for 2023, companies can now constitute a “resilience provision” intended to meet these reinsurance costs thanks to annual allocations. tax free.
The FDJ confirmed to Reuters the captive reinsurance project, with a start-up objective in 2025, specifying that its file is currently being examined after having submitted an application for approval to the Prudential Control and Resolution Authority. (ACPR).
The FDJ reinsurance captive, called FDJ Ré, will be chaired by Pascal Chaffard, deputy general director of finance, performance and strategy of the group, and managed by Edeline Minaire, finance director of the group, according to a document consulted by Reuters.
The total amount of the FDJ’s insurance premiums for 2023 amounted to approximately 7.8 million euros, according to its 2023 annual report.
The French group did not have captive reinsurance until now. He is working with the French subsidiary of the world’s leading insurance broker Marsh, one of its historic brokers, for its implementation.
“This captive should make it possible to optimize the FDJ’s arbitrage on the insurance market and gain autonomy in a market that is still a little wary of games in general,” Laurent Bonnet told Reuters. , in charge of captives and alternative risk transfer solutions at Marsh France.
17 LICENSED CAPTIVES
This new creation comes after a strong dynamic of domiciliation of captives in France following the revision of the tax framework of the system, the French groups preferring until now to create their dedicated subsidiary in countries with more advantageous tax conditions such as Luxembourg.
While France had less than ten captive reinsurance companies before 2022, the ACPR had approved 17 in total at the end of October 2024, according to a guide on the subject published at the beginning of November.
La Poste, Naval Group and Publicis recently received their approval while companies like Vivendi, Orange, Pluxee and Fnac Darty are awaiting a response from the supervisor.
Proof of the rise in maturity of the French ecosystem, the French Federation of Captive Reinsurance was recently launched within the framework of the Association for Corporate Risk and Insurance Management (Amrae). The FDJ plans to join the group which has around ten members, the group said.
(Written by Bertrand De Meyer, edited by Blandine Hénault)
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