For Immediate Release:
October 15, 2020
Oklahoma Completes First Insurance Business Transfer in the United States
OKLAHOMA CITY – Today, Oklahoma Insurance Commissioner Glen Mulready announced that the District Court of Oklahoma County approved Providence Washington Insurance Company (PWIC) to complete its Insurance Business Transfer (IBT) Plan.
With this approval by the Court, the Plan will transfer substantially all the insurance and reinsurance business underwritten by PWIC to Yosemite Insurance Company, an insurance company in Oklahoma. The transfer will include the liabilities associated with those policies as well as $38.5 million from PWIC to Yosemite as consideration for assuming those liabilities. Both PWIC and Yosemite are wholly owned subsidiaries of Enstar Group Limited.
The process began in 2019 when PWIC filed its IBT Plan with the Oklahoma Insurance Department. The IBT Plan includes extensive financial documents, the independent expert’s report and a proposed procedure for how the transaction will be communicated to policyholders and other interested parties. The Plan was reviewed by an independent expert, the Commissioner and department staff. The Commissioner approved the IBT Plan and authorized PWIC to petition the District Court for approval.
“Completing the first IBT in the United States is a huge milestone for Oklahoma and the Oklahoma Insurance Department,” said Commissioner Mulready. “This is a big step forward in transforming and invigorating the run-off market. We look forward to completing additional IBT’s in the coming months.”
“We are honored to be the first company to complete an IBT in Oklahoma,” commented Robert Redpath of Enstar (US) Inc. “This transaction is beneficial to all parties involved and we are passionate about the benefits it will bring to the insurance industry.”
“I congratulate Commissioner Mulready and the Oklahoma Insurance Department for their success in creating a market for insurance business transfers. Completing the first IBT in U.S. history is a landmark accomplishment for Oklahoma, and I thank Commissioner Mulready for his leadership,” Oklahoma Governor Kevin Stitt 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 Transfers of the Financial Services & Markets Act of 2000 in the United Kingdom, which has resulted in over 300 successful transfers during the past 20 years. 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 IBT’s or other insurance issues, contact the Oklahoma Insurance Department at 1-800-522-0071 or visit our website at www.oid.ok.gov.