Second Insurance Business Transfer in U.S. Approved in Oklahoma

An Oklahoma court has approved Sentry Insurance Co.’s (Sentry) Insurance Business Transfer (IBT) Plan, insurance regulators say.

This is the second IBT completed in the United States, according to the Oklahoma Insurance Department. The first was approved and authorized in Oklahoma in October 2020.

With the approval by the court, the new IBT would transfer a block of reinsurance business underwritten by Sentry to National Legacy Insurance Co. (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.

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.

Source: Oklahoma Insurance Department

Topics USA Oklahoma