News
Enstar Plan marks milestone proof of concept for US insurance business transfers
Court approval of an insurance business transfer (IBT) between two Enstar Group Limited affiliates provides a useful proof of concept for this legacy solution in the US. IBT provides insurers with an expanding regulatory toolkit alongside sale, reinsurance, and...
Inflection point: COVID-19 and resulting balance sheet pressures spur hunt for lasting legacy solutions
With mounting novel coronavirus (COVID-19) liabilities straining insurers’ and reinsurers’ balance sheets, the pressing need to free the capital tied up in legacy portfolios can no longer be ignored. Sorting out legacy risk would not only relieve reserve pressure, but...
Navigating through the post-COVID 19 minefield
Why all the different disruptions, knock-on impacts, and unintended consequences facing insurers need to be assessed and addressed holistically. From cost control and claims handling to compliance and capital management, the COVID-19 outbreak has turned processes and...
Insurers need to do their bit. But swamping them with uncovered claims may unintentionally damage an industry that is vital to our economic recovery.
COVID-19 is an earthquake; its impact puts huge strains on our health and livelihood. Insurers have a critical role to play in helping businesses and their employees to get through this emergency and bounce back strongly at the other end. Proposed state legislation...
Courts aren’t a rubber-stamp: UK ruling offers sharp reminder of the challenges of securing judicial approval for insurance business transfers
The UK High Court’s rejection of Prudential Assurance’s proposed Part VII transfer of annuity policies to Rothesay1, which came despite prior approval from both the Regulators and the Independent Expert, should raise questions about the nascent insurance business...
On August 2, 2019, Andrew Rothseid, Principal, RunOff Re.Solve LLC, delivered a talk to the Financial Examiners Education Foundation entitled “Restructuring alternatives: Will new legislation help to bridge the legacy gap?”
A copy of the text of the talk is available here and a copy of the slides supporting the talk are available here.
Potential opportunity or legacy cul-de-sac: Do insurance division statutes deliver finality?
Iowa and Georgia have joined Connecticut, Illinois, and Michigan in passing legislation which is intended to allow domiciled insurers to divide into two or more legal entities. (The insurance division statutes in Connecticut, Illinois, Iowa, and Michigan apply to...
Recent US Judicial and Regulatory Developments Effecting Legacy Insurance Liabilities
On November 7, 2018 I had the pleasure of speaking in London at the Fall Technical Meeting of the International Alliance of Asbestos & Pollution Reinsurers (IntAP). The presentation, US Regulatory and Judicial Developments Effecting Legacy Liabilities, covered:...
Law 360 publishes analysis by Andrew Rothseid of RunOff Re.Solve and Joseph Donley of Clark Hill of court ruling confirming reinsurance arbitration award
Pa. Reinsurance Ruling Sets Precedent For Insolvency Cases In an April 11, 2018, memorandum and order, Pennsylvania’s Commonwealth Court: Confirmed an arbitration award in favor of the Pennsylvania Insurance Commissioner, as liquidator of Westmoreland Casualty...
Andrew Rothseid of RunOff Re.Solve quoted in recent Insurance Day article on pending amendments to Rhode Island Restructuring Statute
Rhode Island moves to address legacy transfer uncertainties Article from Insurance Day Run-off insurance deals have so far failed to materialise in Rhode Island despite a new regulation – Regulation 68 – implemented in 2015, which was expected to boost the market in...
Rhode Island House Bill Scheduled for a Vote on June 19, 2018
Who We Are Andrew Rothseid, Principal of RunOff Re.Solve, designs and executes solutions that provide insurers, reinsurers, cedents, policyholders, and regulators with legal and financial finality from run off captive and legacy liabilities. To find out more, please...
Opening up the Rhode Island Statute: Proposed amendment to offer insurance business transfer without requiring subsequent commutation
What if an insurer wanted to separate legacy from live business by transferring it into a new entity, but didn’t want to go all the way to commutation? A proposed amendment to the Rhode Island Statute could make this possible. In 2011, the Rhode Island Statute was...
Andrew Rothseid of RunOff Re.Solve has written the captive closure chapter for the American Bar Association’s Captive Insurance Deskbook for the Business Lawyer.
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Oh, Oklahoma: Landmark legislation could provide huge boost for run off solutions
If a proposed new law is enacted, Oklahoma would become the first US state to allow the blanket transfer or novation of insurance business from one company to another, without requiring specific policyholder consent1. What are the opportunities for insurers with...
Accelerated Closure: Where There’s a Will There’s a Way
The imminent closures of the insolvent Westmoreland Casualty Company and Rockwood Insurance Company highlight how seemingly endless and intractable issues emanating from insurance and reinsurance policies that were written long ago (legacy issues), and which have been...
