Oklahoma Insurance Commissioner approves R&Q IBT transaction
The Oklahoma Insurance Commissioner has approved the insurance business transfer (IBT) of a portfolio of Sentry Insurance reinsurance policies to National Legacy Insurance Company (NLIC), a subsidiary of Randall & Quilter Investment Holdings.
The policies relate to Sentry’s involvement as a member of the Excess & Casualty Reinsurance Association pool (ECRA).
The transfer of Sentry’s ECRA pool insurance liabilities to NLIC will not change policy terms, rights and obligations or the way the policy is administered. The Commissioner was satisfied that the proposed transaction will not have a materially adverse effect on stakeholders and the parties are free to petition the Oklahoma District Court to obtain final approval.
Modelled on the successful Part VII transfer process in the UK and EU, Oklahoma’s IBT legislation provides a mechanism for insurers to legally transfer re/insurance business to another insurance company following consultation with stakeholders and a court hearing.
Mike Walker, head of legacy at R&Q, said the oversight of the Commissioner and the court application process provide a robust framework for stakeholder protection.
“We will now focus our efforts on engaging with stakeholders and obtaining a successful court outcome,” he said. “We believe this innovative solution will become increasingly common as a tool to transfer liabilities effectively between insurance companies. It will prove to be of particular use to those entities looking to exit lines of business or dispose of legacy portfolios in the US.”