Pro US Holdings, the sole shareholder and immediate parent of ProTucket Insurance Company – the insurance carrier established in Rhode Island to provide run-off transfer solutions in the U.S. – has contributed $35 million of funding to ProTucket Insurance Company. The capital contribution was made possible by funds obtained from global reinsurer Swiss Reinsurance Company Ltd.
A minimum capital requirement is needed for ProTucket to legally accept insurance portfolios from various states. Pro US Holdings provided the $35 million cash injection to meet these requirements, as well as to rapidly expand the licensing and reinsurance accreditation of ProTucket across all 50 states and the District of Columbia.
ProTucket intends to use a protected cell for each Insurance Business Transfer (IBT) in its pipeline. The creation of this new cell and its funding is a major step in allowing the first IBT in the U.S. to take place, according to a press release issued by Pro Global.
In 2017, ProTucket became the first Rhode Island domestic insurer created to provide run-off portfolio transfers under Rhode Island’s Voluntary Restructuring of Solvent Insurers Law. Rhode Island Regulation 68 allows insurers and reinsurers to cede run-off commercial books with court sanctioned finality in a similar fashion to Part VII of the U.K.’s Financial Services and Markets Act.
Source: Pro Global
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