Randall & Quilter Investment Holdings Ltd (LON:RQIH), the leading non-life global specialty insurance company focusing on Program Management and Legacy Insurance businesses, has announced that the Oklahoma District Court has given its final approval to the Insurance Business Transfer of a portfolio of Sentry Insurance Company reinsurance policies to National Legacy Insurance Company, an R&Q wholly owned subsidiary. The policies relate to Sentry’s involvement as a member of the Excess & Casualty Reinsurance Association pool.
In considering the IBT application, the Court reviewed extensive financial information, including a report from an Independent Expert, noting that the Insurance Commissioner had previously approved the transaction.
In sanctioning the transfer, the Court also noted that, following a robust notification and communication plan implemented by the parties, there were no stakeholder objections to the transaction. This is the first time the Oklahoma IBT process has been used to transfer business between two entirely separate counterparties.
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.
Mike Walker, Head of Transformation at Randall & Quilter said: “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. 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.”