Randall & Quilter Inv Hldgs Ltd Insurance Business Transfer ECRA Pool Liabilities (9476J)
August 27 2021 - 1:00AM
UK Regulatory
TIDMRQIH
RNS Number : 9476J
Randall & Quilter Inv Hldgs Ltd
27 August 2021
Randall & Quilter Investment Holdings Ltd.
Insurance Business Transfer of ECRA Pool Liabilities
27 August 2021
Randall & Quilter Investment Holdings Ltd. (AIM-RQIH)
("R&Q"), the leading non-life global specialty insurance
company focusing on Program Management and Legacy Insurance
businesses, is pleased to announce that the Oklahoma District Court
('the Court') has given its final approval to the Insurance
Business Transfer ('IBT') of a portfolio of Sentry Insurance
Company ('Sentry') reinsurance policies to National Legacy
Insurance Company ('NLIC'), an R&Q wholly owned subsidiary. The
policies relate to Sentry's involvement as a member of the Excess
& Casualty Reinsurance Association pool ('ECRA').
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 R&Q 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."
Ends
Enquiries to:
Randall & Quilter Investment Holdings www.rqih.com
Ltd.
Mike Walker Tel: 020 7977 0933
Numis Securities Limited (Nominated Advisor)
Stuart Skinner Tel: 020 7260 1000
Charles Farquhar Tel: 020 7260 1000
Barclays Bank PLC (Joint Broker)
Mark Astaire Tel: 020 7632 2322
Milan Solanki Tel: 020 7632 2322
FTI Consulting
Edward Berry/Tom Blackwell Tel: 020 3727 1046
Notes to Editors:
Unique Transaction
Global non-life legacy liabilities are estimated at US$860
billion. The US is the industry's largest non-life legacy market
with liabilities estimated at $400bn. Until recently, however,
there has not been a mechanism like the Part VII transfer process,
available in the UK/EU, which enables insurance liabilities to be
transferred between counterparties. This mechanism enables owners
of business, including discontinued business, to achieve legal
finality.
In 2020, the first transfer took place under Oklahoma's
Insurance Business Transfer legislation. However, this was an
internal portfolio transfer between two entities with a common
parent. Today's development is the first time a transfer has taken
place between two entirely separate counterparties. It has the
potential to be a major milestone in the development of the US
P&C legacy market.
About R&Q
R&Q is a non-life global specialty insurance company
operating two core, highly complementary, businesses: Program
Management and Legacy Insurance. Both these businesses are leaders
in markets with high barriers to entry and significant secular
growth opportunities.
Legacy Insurance generates profits and capital extractions from
expert management of legacy non-life insurance portfolios. Program
Management generates commission income from its licensed (and
rated) carriers in the US, EU and the UK, writing niche and
profitable program business, largely on behalf of highly rated
reinsurers.
Legal Entity Identifier (LEI): 2138006K1U38QCGLFC94
Website : www.rqih.com
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