Enstar strikes first insurance business transfer in the US

Bermuda-based re/insurer and run-off specialist Enstar Group has completed the first ever insurance business transfer (IBT) in the US, having received judicial approval from the Oklahoma County District Court.

The transaction occurred between two of its subsidiaries, Providence Washington Insurance Company (PWIC) and Yosemite Insurance Company.

An IBT is a direct transfer of liabilities between insurers after review by an independent expert and receiving regulatory and judicial approval.

The transaction marks the first insurance business transfer to occur in the US since the IBT Act went into effect in Oklahoma on November 1, 2018.

The Oklahoma Insurance Business Transfer Act includes similar principles as the Part VII of the Financial Services and Markets Act of 2000 in the UK. Its legislative framework is designed with implied individual policyholder consent after a rigorous regulatory and judicial review process in which all affected stakeholders may participate.