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🏢 '''Segregated accounts company (SAC)''' is a corporate structure — most commonly domiciled in Bermuda, Guernsey, or other offshore [[Definition:Domicile | domiciles]] — that allows a single legal entity to maintain multiple ring-fenced accounts, each with its own assets and [[Definition:Liability | liabilities]] that are legally insulated from the obligations of every other account and from the company's general account. In the insurance and [[Definition:Reinsurance | reinsurance]] sector, SACs are widely used to house [[Definition:Captive insurance company | captive insurance]] programs, [[Definition:Insurance-linked securities (ILS) | ILS]] structures, and [[Definition:Sidecar (reinsurance) | reinsurance sidecars]], giving multiple unrelated [[Definition:Sponsor | sponsors]] or investors a way to share a single corporate shell without cross-contaminating each other's risk.

⚙️ Each segregated account operates almost like an independent entity for economic purposes: it has its own [[Definition:Premium | premium]] income, [[Definition:Reserves | reserves]], [[Definition:Investment portfolio | investment assets]], and claim obligations. If one account becomes [[Definition:Insolvency | insolvent]], creditors of that account cannot pursue the assets held in other segregated accounts or in the general account — a statutory protection that makes the structure fundamentally different from simply maintaining separate accounting ledgers within a conventional company. Setting up a new segregated account is faster and cheaper than incorporating a standalone [[Definition:Captive insurance company | captive]] or [[Definition:Special purpose vehicle (SPV) | SPV]], because the existing SAC's corporate governance, [[Definition:Board of directors | board]], and regulatory license are already in place. The [[Definition:Regulatory authority | regulator]] in the SAC's domicile reviews each new account but does not require a full company formation process.

💡 The practical appeal for the insurance market is efficiency and flexibility. A [[Definition:Captive management company | captive manager]] can host dozens of unrelated clients inside a single SAC, each benefiting from the structure's statutory segregation while sharing administrative overhead. [[Definition:Insurance-linked securities (ILS) | ILS]] fund managers use SACs to launch new [[Definition:Collateralized reinsurance | collateralized reinsurance]] vehicles quickly in response to market dislocations — a capability that proved valuable during recent hard-market cycles. Investors gain comfort from the legal ring-fencing, and [[Definition:Cedent | cedents]] accepting reinsurance from a SAC account can rely on the segregation to protect the [[Definition:Collateral | collateral]] backing their contracts. As alternative [[Definition:Capital | capital]] continues to flow into reinsurance, the SAC structure remains one of the most versatile vehicles for connecting institutional investors with insurance risk.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Protected cell company (PCC)]]
* [[Definition:Captive insurance company]]
* [[Definition:Special purpose vehicle (SPV)]]
* [[Definition:Collateralized reinsurance]]
* [[Definition:Insurance-linked securities (ILS)]]
* [[Definition:Sidecar (reinsurance)]]
{{Div col end}}

Definition:Segregated accounts company (SAC) - Revision history

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