For Immediate Release:
December 2, 2020
Commissioner Mulready Approves Second Insurance Business Transfer
OKLAHOMA CITY – Oklahoma Insurance Commissioner Glen Mulready has issued an order authorizing Sentry Insurance a Mutual Company (Sentry), a Wisconsin-based insurance company, to submit its Insurance Business Transfer (IBT) Plan to the District Court of Oklahoma County for approval. This is the second IBT approved by an insurance commissioner in the United States. The first one was also approved by Commissioner Mulready in November 2019.
If approved by the Court, this IBT would transfer a block of reinsurance business underwritten by Sentry to National Legacy Insurance Company, a subsidiary of Randall & Quilter Investment Holdings Ltd (NLIC), 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 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 will not have a materially adverse impact on the policyholders and claimants of both companies.
“I’m excited to approve our second IBT in the past year,” Commissioner Mulready said. “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.”
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.
If you have questions about other insurance issues, please contact the Oklahoma Insurance Department at 1-800-522-0071 or visit our website at www.oid.ok.gov.
Questions or comments should be directed to
Communications Director, Liz Heigle
Liz.Heigle@oid.ok.gov | (405) 819-2221