Non-life legacy and run-off acquisition and management, programme services and investments specialist Randall & Quilter Investment Holdings Ltd. has received final approval from the Oklahoma District Court for its insurance business transfer (IBT) deal involving Sentry Insurance Company.
Under the terms of the IBT, a portfolio of Sentry reinsurance policies will be transferred to National Legacy Insurance Company (‘NLIC’), an R&Q wholly owned subsidiary.
The policies relate to Sentry’s involvement as a member of the Excess & Casualty Reinsurance Association pool (‘ECRA’).
This transfer of Sentry’s ECRA pool insurance liabilities to NLIC, effective from 26 August 2021, will not change policy terms, rights and obligations or the way the policy is administered.
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.
“The process which the Court has sanctioned today has been extremely rigorous, with regulatory oversight, an Independent Expert review and a communication process which enabled stakeholders to engage,” said Mike Walker, Head of Transformation at R&Q.
“As US companies look to redeploy capital and seek to exit lines of business, this innovative solution – tried and tested in other jurisdictions – will continue to be attractive.”
