Enstar Completes First Insurance Business Transfer Transaction in the U.S.

Rhea-AI Summary

Enstar Group Limited (NASDAQ: ESGR) has achieved a significant milestone by completing the first insurance business transfer (IBT) in the U.S., receiving judicial approval from the Oklahoma County District Court. This innovative transaction involved its subsidiaries, Providence Washington Insurance Company and Yosemite Insurance Company, enabling a direct transfer of liabilities between insurers. The IBT process, enacted under the Oklahoma Insurance Business Transfer Act, ensures policyholder consent through thorough regulatory reviews. This event marks a historic achievement for the U.S. insurance landscape.

Positive

• Completion of the first insurance business transfer in the U.S.
• Judicial approval enhances credibility and regulatory compliance.
• Innovative transfer process can boost operational efficiency.

Negative

• None.

HAMILTON, Bermuda, Oct. 15, 2020 (GLOBE NEWSWIRE) -- Enstar Group Limited (NASDAQ: ESGR) (“Enstar”) today announced that it has successfully completed the first ever insurance business transfer (“IBT”) to occur in the United States, having received judicial approval from the Oklahoma County District Court. The transaction occurred between two of our subsidiaries, Providence Washington Insurance Company (“PWIC”) and Yosemite Insurance Company (“Yosemite”).

An IBT is a direct transfer of liabilities between insurers after review by an Independent Expert and receiving regulatory and judicial approval. The Oklahoma Insurance Business Transfer Act (“IBT Act”) includes similar principles as the Part VII of the Financial Services and Markets Act of 2000 in the United Kingdom. Notably, the legislative framework is designed with implied individual policyholder consent after a rigorous regulatory and judicial review process in which all affected stakeholders may participate. The IBT Act went into effect in Oklahoma on November 1, 2018.

Although common in many parts of the world, this is the first insurance business transfer to occur in the United States.

About Enstar

Enstar is a NASDAQ-listed leading global insurance group that offers innovative capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia, and other international locations. A market leader in completing legacy acquisitions, Enstar has acquired over 100 companies and portfolios since its formation in 2001. For further information about Enstar, see www.enstargroup.com.

Contact:      Enstar Communications
Telephone: +1 (441) 292-3645

 

FAQ

What is the significance of Enstar's insurance business transfer on October 15, 2020?

Enstar completed the first insurance business transfer in the U.S., marking a historic achievement in the insurance sector.

Which companies were involved in Enstar's insurance business transfer?

The transaction involved Enstar's subsidiaries, Providence Washington Insurance Company and Yosemite Insurance Company.

What does the Oklahoma Insurance Business Transfer Act entail?

The Act facilitates a direct transfer of liabilities between insurers, ensuring policyholder consent through regulatory reviews.

How does the U.S. insurance business transfer compare to international practices?

While common globally, this marks the first of its kind in the U.S., aligning with practices seen in the UK.

What are the implications of the IBT for Enstar's operational efficiency?

The successful IBT may enhance Enstar's operational efficiency by streamlining liability management.