RCS - Randall & Quilter Ld - Insurance Business Transfer

R&Q Insurance HoldingsAnnouncement

26/11/2020 07:00

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RNS Number : 5007G  Randall & Quilter Inv Hldgs Ltd  26 November 2020

 

 

 

Randall & Quilter Investment Holdings Ltd.

 

Insurance Business Transfer of ECRA Pool Liabilities

 

26 November 2020

 

Randall & Quilter Investment Holdings Ltd. ('R&Q' or 'the Group') is
pleased to announce that the Oklahoma Insurance Commissioner ('the
Commissioner') has approved the Insurance Business Transfer ('IBT') of a
portfolio of Sentry Insurance a  Mutual 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').

 

The IBT application reviewed by the Commissioner included extensive financial
information, a plan for how the transaction will be communicated to
stakeholders and a report from an independent expert, concluding that the
proposed transaction will not have a materially adverse effect on
stakeholders. The transfer of Sentry's ECRA pool insurance liabilities to
NLIC will not change policy terms, rights and obligations or the way the
policy is administered.

 

The Commissioner's approval will now allow the parties to petition the
Oklahoma District Court ('the Court') to obtain final approval.

 

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 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."

 

Ends

 

 

Enquiries to:

Randall & Quilter Investment Holdings Ltd.      www.rqih.com
 Mike Walker                                     Tel: 020 7977 0933

 Numis Securities Limited (Nominated Advisor)
 Stuart Skinner / Huw Jeremy                     Tel: 020 7260 1000
 Charles Farquhar                                Tel: 020 7260 1000

 Shore Capital Stockbrokers Limited
 Stephane Auton/James Thomas                     Tel: 020 7408 4090

 FTI Consulting

 Edward Berry/Tom Blackwell                      Tel: 020 3727 1046

 

 

 

Notes to Editors:

 

Unique Transaction

The US is the industry's largest P&C legacy market with liabilities
estimated at $792bn. Until recently, however, there has not been a mechanism
similar to the Part VII transfers used in the UK/EU which enables insurance
liabilities to be transferred enabling owners of discontinued business to
achieve finality while also enabling claims and portfolios to be efficiently
managed under new owners.

 

Last month, the first transfer took place under the Oklahoma's Insurance
Business Transfer Act. 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
(https://protect-eu.mimecast.com/s/0nAuCQkz1s1okRiP24kT?domain=rqih.com)

 

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