MBDA Insurance DAC (The Captive) is a wholly owned subsidiary of MBDA that provides insurance policies solely for entities within the MBDA Group.
The Captive’s objective is to provide insurance when the external insurance market is unable to provide the full coverage required against the specific risks of MBDA entities. In addition, The Captive can provide insurance when the external insurance market’s premiums are deemed too expensive.
The Captive was originally incorporated as a reinsurance company (company number 461828), domiciled in Dublin, Ireland. On 23 March 2012 the Central Bank of Ireland authorised The Captive to undertake the business of non-life insurance.
The Captive is subject to ‘The Corporate Governance Code for Captive Insurance and Captive Reinsurance Undertakings’ but is not deemed to be a ‘major institution’ under the terms of the code.
Section 1551(1) of the Companies Act 2014 provides an exemption for captive insurers to establish an Audit Committee. This exemption exists where, inter alia, a body performs equivalent functions to an audit committee. The Board of The Captive has determined that it will perform the equivalent functions of an audit committee for The Captive and accordingly has taken responsibility to perform the equivalent functions of an audit committee for The Captive.
Irish company law requires the directors of The Captive to prepare financial statements for each financial year. Under that law, the directors have elected to prepare The Captive’s financial statements in accordance with FRS102 ‘The Financial Reporting Standards applicable in the United Kingdom and republic of Ireland’ and FRS103 ‘Insurance Contracts’.
Independent auditors report on the financial statements of the Captive to the members of The Captive offering their opinion on whether the financial statements (1) Give a true and fair view of the assets, liabilities and financial position of the company and of its profits for the year; (2) have been properly prepared in accordance with Irish Generally Accepted Accounting Practice; and (3) have been properly prepared in accordance with the requirements of the Companies Act 2014.