Enstar Completes First IBT Transaction In US
Enstar Group Limited has announced that it has successfully completed the “first ever insurance business transfer [IBT] to occur in the United States.”
A spokesperson said, “Enstar Group Limited today announced that it has successfully completed the first ever insurance business transfer 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.”
