A Cell Captive is where a company self-insures by owning a class of shares (cell) in a special purpose insurance company.

Each cell captive is a separate class of ordinary shares with specified dividend rights. Clients subscribe to these shares.

The client as the cell owner is afforded the capabilities enjoyed by a licensed insurer and/or reinsurer.

Each cell is ring-fenced, with each cell required to be individually sound and solvent. No cross-subsidization of cells can occur. The structure offers commercial certainties and protections in that the cell owner retains its shareholding rights over the net assets of its own cell

A third party cell is where the insured is a party other than the preference shareholder.