Foley & Lardner LLP acted as legal counsel to Sentry Insurance Company on its insurance business transfer (IBT) of a portfolio of reinsurance contracts to National Legacy Insurance Company (NLIC), a subsidiary of Randall & Quilter Investment Holdings Ltd. The Oklahoma Insurance Department approved the IBT plan on November 23, 2020, and the Oklahoma District Court gave its final approval of the IBT on Thursday, August 26, 2021.
The contracts transferred from Sentry to NLIC relate to Sentry’s involvement as a member of the Excess & Casualty Reinsurance Association pool. The transaction will not change policy terms and will not impact how policies are administered.
A first-of-its-kind transaction, this was the first instance in which the Oklahoma IBT process was leveraged to transfer business between two independent counterparties. Oklahoma’s IBT structure is modeled on the Part VII transfer process in the UK and EU and allows insurers to transfer business to another insurance provider after consulting with stakeholders and holding a court hearing.
The Foley team was led by partners Morgan Tilleman and Kevin Fitzgerald, and associate Jennifer Haro.