Pro U.S Holdings has made a capital contribution of $35 million to its subsidiary ProTucket Insurance Company, a U.S insurance carrier that provides run-off transfer solutions in the U.S, with funding obtained from Swiss Re.
The capital injection was provided to allow ProTucket to meet the minimum capital requirements for it to legally accept insurance portfolios from various states, as well to rapidly expand the licensing and reinsurance accreditation of ProTucket across all 50 U.S states.
ProTucket intends to use a protected cell for each Insurance Business Transfer (IBT) in its pipeline, and it claimed that the creation of this new cell and its funding is a major step towards allowing the first IBT in the U.S to take place.
In 2017, ProTucket became the first Rhode Island domestic insurer created to provide run-off portfolio transfer solutions under Rhode Island’s Voluntary Restructuring of Solvent Insurers Law.
“This marks another milestone in Pro Global’s leadership in establishing the IBT process as a standard mechanism in the US, similar to Part VII transfers in the UK,” said Artur Niemczewski, the Chief Executive Officer (CEO) of Pro Global.
“This process is gaining momentum in the US as up to $350 billion of run-off remains trapped in the balance sheets of US carriers. Pro is thrilled to be playing an important role in pioneering this process.”
Eric Smith, President and CEO Swiss Re Americas, also commented: “We are following closely the developments with IBT in the US. We look forward to working with Pro to develop opportunities for our core clients as the IBT market gains a foothold in the US, providing new opportunities for capital management and increased capacity for expansion of insurance coverages.”
Mory Katz, CEO of ProTucket and Pro Global’s US Managing Director, added: “ProTucket was the first company that was granted a license to implement Regulation 68. Our recent $35 million in funding is a testament to our commitment in pursuing IBT transactions and the benefits it brings to clients and the US insurance market.”