The Oklahoma Department of Insurance has completed its second insurance business transfer (IBT) plan in the US.
Approved by Commissioner Glen Mulready of the District Court of Oklahoma County, the IBT passes over a portion of the reinsurance business written by Sentry Insurance Company to National Legacy Insurance Company (NLIC), a subsidiary of Randall & Quilter (R&Q) Investment Holdings.
The transfer includes the liabilities associated with the reinsurance business, as well as $2.9 million paid from Sentry to NLIC to assume the liabilities so that Sentry can focus on its core business of commercial property and general liability insurance.
Michael Williams, chief actuary and risk officer at Sentry, comments: “Sentry’s successful transfer of run-off assumed reinsurance to NLIC was achieved by working with the Oklahoma Department of Insurance and other stakeholders.”
“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,” explains 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.”
Commissioner Mulready adds: “This is an exciting accomplishment for Oklahoma. Our team is working hard to ensure that Oklahoma IBT law continues to bring tremendous new opportunities to our state.”
The IBT legislation was brought into effect in Oklahoma in November 2018, while the first IBT completed by an insurance commissioner in the US was approved by Commissioner Mulready and authorised by the District Court in October 2020 between Providence Washington Insurance Company and Yosemite Insurance Company.
