Randall & Quilter Investment Holdings has received approval for an Insurance Business Transfer to take place between its subsidiary National Legacy Insurance Company’s portfolio and Sentry Insurance a Mutual Company.
The transaction has been approved by the Oklahoma Insurance Commissioner, to which the application included extensive financial information, along with a plan for how the transaction will be communicated to stakeholders.
The application also held a report from an independent expert, concluding that the proposed transaction will not have a materially adverse effect on stakeholders.
The transfer of Sentry’s ECRA pool insurance liabilities to National Legacy will not change policy terms, rights and obligations or the way the policy is administered.
The decision will now allow the parties to petition the Oklahoma District Court to obtain final approval.
Oklahoma’s IBT legislation has opened the door for more insurers to legally transfer re/insurance business to another insurance company following consultation with stakeholders and a Court hearing.
This legislation mirrors the successful Part VII transfer process that took place in the UK and EU.
Mike Walker, Head of Legacy at R&Q said: “We are pleased to have completed this important step in the Oklahoma IBT process and we will now focus our efforts on engaging with stakeholders and obtaining a successful Court outcome.
“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.
“The oversight of the Commissioner and the Court, coupled with the rigour of the Independent review and communication processes required under the legislation, provides a robust framework for stakeholder protection.”
