OKLAHOMA CITY – Sentry Insurance a Mutual Company, has been authorized by State Insurance Commissioner Glen Mulready to submit its Insurance Business Transfer (IBT) plan to the district court of Oklahoma County for approval.
Sentry is a Wisconsin based insurance company.
This is the second IBT approved by an insurance commissioner in the United States. Mulready approved the first one, as well, in November 2019.
If approved by the court, this IBT would transfer a block of reinsurance business underwritten by Sentry to National Legacy Insurance Co. (NLIC), a subsidiary of Randall & Quilter Investment Holdings Ltd., an insurance company domiciled in Oklahoma. The transfer would include the liabilities associated with the reinsurance as well as $2.9 million from Sentry to NLIC as consideration for assuming those liabilities.
The application filed by Sentry and reviewed by the commissioner and department staff in-
includes the IBT plan, extensive financial documents, and a
plan for how the transaction will be communicated to policyholders and other interested parties. It also includes a report from an independent expert who concluded that the proposed transaction would not have a materially adverse impact on the policyholders and claimants of both companies.
“The Oklahoma IBT law continues to bring tremendous opportunities to Oklahoma, and I look forward to seeing continued business growth while ensuring protections for policyholders,” Mulready said.
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 more than 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.