When HighDome met REI

Jacqueline Legrand of MDS Holdings and Paula Rios of HighDome PCC give us an example of the opportunities for PCCs in niche markets.

When HighDome met REI
Once upon a time, the founders of Real Estate Insurance (REI), sought to set up their own insurance vehicle for real estate risks after 20 years of experience as specialized brokers. They met with HighDome, a PCC based in Malta. They had the same market vision and combined their expertise to develop an innovative product that would help many real estate investors in going forward.

REI started in the insurance industry as a brokerage firm focused on niche markets which worked with various insurers to place specialized risks. Over time, the capacity and appetite of insurance companies to provide highly customized niche solutions decreased as it became more cost effective for them to focus their efforts and investment on standard products.

For our colleagues at REI, it was time to innovate further and move from being an insurance broker to being a risktaker, through the formation of their own insurance company.

When REI met HighDome, a protected cell company (PCC) owned by MDS Group, it proved to be a turning point for both firms. There was an immediate understanding between our teams, as both companies shared the same values of entrepreneurial spirit and innovation. We were determined to create a pioneering solution for REI using HighDome’s PCC structure.

REI’s goal was to develop an insurance solution to guarantee the revenue of its client’s real estate operations, ranging from commercial investments such as furnished apartments to rent with hotel services, student accommodation, retirement homes and offices to residential rental investments.

REI’s insurance product is an exceptional booster for the sale of real estate products and for institutional or private investors, providing buyers with a high level of security and unique leverage to negotiate bank loans. The real estate industry is challenging and competitive, and REI’s insurance products have the potential to become a label of quality as well as being a unique selling point for real estate promoters, who can offer guaranteed revenue products to their clients. The market is broad and allows real estate investors to manage their risks and maximize the leverage of their loan negotiations.

Furthermore, REI’s products promote real estate investments for both corporations and individuals. The real estate market is attractive and dynamic, providing investors with a great alternative to the stock markets for building long-term wealth. In most countries, the real estate market for investors already exists or is being developed to fulfill a growing need for housing or commercial premises.

This constitutes an additional point of interest for tenants and investors who want to build wealth or generate secure rental revenues. REI’s cell combines
unique elements that make the company strong and appealing to real estate investors: 

• REI can act both as an insurance and reinsurance company, with a long term focus on a specific market. This adds more flexibility to the company decision-making process. 

• The REI team is comprised of individuals with more than 20 years’ experience as well as a proven track record in their specialty. They design efficient solutions to support their clients’ businesses. 

• The REI cell has a dependable IT system developed for effectiveness and transparency, providing much-needed control and communication tools to its stakeholders. 

• The partnership between MDS Group and Brokerslink provides REI with a reach spanning more than 80 countries, making it truly global.

The strategy is based on selecting partners and players who benefit from the cell’s guarantees as well as its brand. The defining factor to developing a solution relies on the choice of partner more than on the country or region.

HighDome, a wholly owned MDS subsidiary with strong ties to Brokerslink, one of the largest associations of independent insurance brokers, is a great added value to any of these solutions.

The selection and issuance of a label must provide major benefits and be a key differentiator for the insurance beneficiary. The objective is to take a minor share of the market (between 10 and 15%). This allows the cell to be selective and ensures it isn’t exposed to only one risk. Major players usually have to absorb the consequences of structural or cyclical market changes where they are dominant.

A (re)insurance product is not developed with predefined specifications that a company has to accept and follow and REI leverages its capabilities and resources so that a solution is tailored to a given market, region or country. To ensure sound risk management, the revenue–sharing agreement of each participant is outlined contractually, allowing for solidarity between each member.


The creation of REI’s cell is an important development in the fledgling history of cell captives and it has allowed their key shareholders to uncover the factors critical to success. HighDome will continue to provide innovative solutions in the future – will you play your part?
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