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(Sharecast News) - Non-life specialty insurance company Randall & Quilter announced on Friday that the Oklahoma District Court has given its final approval to the insurance business transfer of a portfolio of Sentry Insurance Company reinsurance policies to its wholly-owned subsidiary, National Legacy Insurance Company (NLIC).
The AIM-traded firm said the policies related to Sentry's involvement as a member of the Excess & Casualty Reinsurance Association pool.
It said that, in considering the transfer 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.
It was the first time the Oklahoma insurance business transfer process was used to transfer business between two entirely separate counterparties, Randall & Quilter said.
The transfer of Sentry's pool insurance liabilities to NLIC, effective 26 August, would not change policy terms, rights and obligations or the way the policy was administered.
Modelled on the successful Part VII transfer process in the UK and EU, Oklahoma's insurance business transfer legislation provided a mechanism for insurers to legally transfer business to another insurance company, following consultation with stakeholders and a court hearing.
"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," said the company's head of transformation, Mike Walker.
"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."
At 1108 BST, shares in Randall & Quilter Investment Holdings were up 1.15% at 166.9p.
30 May 2022 17:59
IN BRIEF: Randall & Quilter Investment rises on strong performance
Randall & Quilter Investment Holdings Ltd - Bermuda-based specialty non-life insurance company with Program Management and Legacy Insurance businesses - Says it continues to be "excited by the strong growth we are seeing in our Program Management business". For three months to March 31, reports gross written premiums of USD370 million, up sharply from USD193 million a year ago. Looking ahead, Randall & Quilter on track to deliver USD1.75 billion of gross written premium in 2022.
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