For Immediate Release:
August 26, 2021
Oklahoma Completes Second Insurance Business Transfer in the United States
OKLAHOMA CITY – Oklahoma Insurance Commissioner Glen Mulready announced today that the District Court of Oklahoma County approved Sentry Insurance Company (Sentry) to complete its Insurance Business Transfer (IBT) Plan. This is the second IBT completed by an insurance commissioner in the United States. The first was also approved by Commissioner Mulready and authorized by the District Court in October 2020.
With this approval by the Court, the new IBT would transfer a block of reinsurance business underwritten by Sentry to National Legacy Insurance Company (NLIC), an insurance company domiciled in Oklahoma and a subsidiary of Randall & Quilter Investment Holdings Ltd. The transfer will include the liabilities associated with the reinsurance as well as $2.9 million from Sentry to NLIC as consideration for assuming those liabilities.
“This is an exciting accomplishment for Oklahoma,” Commissioner Mulready said. “Our team is working hard to ensure that Oklahoma IBT law continues to bring tremendous new opportunities to our state.”
“Sentry’s successful transfer of runoff assumed reinsurance to National Legacy Insurance Company was achieved by working with the Oklahoma Department of Insurance and other stakeholders. The IBT process works and this transfer will help Sentry shed its old reinsurance liabilities and focus on its core business,” Michael Williams, Chief Actuary & Risk Officer at Sentry 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,” Mike Walker, Head of Transformation at R&Q said. “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.”
Oklahoma’s IBT law became effective in November 2018 and is the most expansive such law in the country. The Oklahoma process closely mirrors Part VII of the Financial Services & Markets Act of 2000 in the United Kingdom, which has resulted in over 300 successful transfers. This cutting-edge mechanism focuses on the protection of consumers while allowing insurance companies to strategically deploy assets to their areas of focus.
If you have questions about other insurance issues, please contact the Oklahoma Insurance Department at 1-800-522-0071 or visit our website at www.oid.ok.gov.