R&Q gains approval for Oklahoma insurance business transfer

Insurance services and investment company Randall & Quilter (R&Q) has secured approval from the Oklahoma Insurance Commissioner for an insurance business transfer (IBT) of a portfolio Sentry Insurance reinsurance policies to its subsidiary National Legacy Insurance Company (NLIC).

The policies relate to Sentry’s involvement as a member of the Excess & Casualty Reinsurance Association pool (ECRA).

Modelled on the 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.

The Commissioner’s approval will allow the parties to petition the Oklahoma District Court to obtain final approval.

Mike Walker, head of legacy at R&Q, said: “We are pleased to have completed this important step in the Oklahoma IBT process and we will now focus our efforts on engaging with stakeholders and obtaining a successful Court outcome. We believe this innovative solution will become increasingly common as a tool to transfer liabilities effectively between insurance companies. It will prove to be of particular use to those entities looking to exit lines of business or dispose of legacy portfolios in the US.

"The oversight of the Commissioner and the Court, coupled with the rigour of the Independent review and communication processes required under the legislation, provides a robust framework for stakeholder protection.”