The District Court of Oklahoma County has approved the Providence Washington Insurance Company (PWIC) to complete its insurance business transfer (IBT) plan.
The plan will transfer substantially all the insurance and reinsurance business underwritten by PWIC to Yosemite Insurance Company, an insurance company in Oklahoma.
The transfer will include the liabilities associated with those policies as well as $38.5 million from PWIC to Yosemite as consideration for assuming those liabilities. Both PWIC and Yosemite are wholly owned subsidiaries of Enstar Group.
Earlier this year, it was also announced that Enstar Group entered into a novation agreement with affiliates of ridesharing company Lyft and underwriting companies of Zurich North America.
The transfer process began in 2019 when PWIC filed its IBT plan with the Oklahoma Insurance Department (OID).
The IBT plan, which was reviewed by an independent expert, the commissioner and department staff, includes financial documents, the independent expert’s report and a proposed procedure for how the transaction will be communicated to policyholders and other interested parties.
Oklahoma Insurance Commissioner Glen Mulready approved the IBT plan and authorised PWIC to petition the District Court for approval.
The Oklahoma IBT law, which became effective in November 2018, closely mirrors Part VII Transfers of the Financial Services and Markets Act of 2000 in the UK, which has resulted in over 300 successful transfers during the past 20 years.
Commenting on the transfer Mulready said: “Completing the first IBT in the US is a huge milestone for Oklahoma and the Oklahoma Insurance Department.”
He added: "This is a big step forward in transforming and invigorating the run-off market. We look forward to completing additional IBT's in the coming months."
