Pro US Holdings, the sole shareholder and immediate parent of ProTucket Insurance Company, the insurance carrier established in Rhode Island to provide run-off transfer solutions in the US, announced today that itcontributed$35 million of funding to ProTucket Insurance Company. The capital contribution was made possible by funds obtained from leading global reinsurer, Swiss Reinsurance Company Ltd.
A minimum capital requirement is needed for ProTucket to legally accept insurance portfolios from various states. Pro US Holdings provided the $35 million cash injection to meet these requirements, as well as to rapidly expand the licensing and reinsurance accreditation of ProTucket across all 50 states and the District of Columbia.
ProTucket intends to use a protected cell for each Insurance Business Transfer (IBT) in its pipeline. The creation of this new cell and its funding is a major step in allowing the first IBT in the US to take place.
In 2017, ProTucket became the first Rhode Island domestic insurer created to provide run-off portfolio transfer solutions under Rhode Island’s Voluntary Restructuring of Solvent Insurers Law. Rhode Island Regulation 68 allows insurers and reinsurers to cede run-off commercial books with court sanctioned finality in a similar fashion to a Part VII of the UK’s Financial Services and Markets Act.
“This marks another milestone in Pro Global’s leadership in establishing the IBT process as a standard mechanism in the US, similar to Part VII transfers in the UK,” said Artur Niemczewski, the Chief Executive Officer of Pro Global. “This process is gaining momentum in the US as up to $350 billion of run-off remains trapped in the balance sheets of US carriers. Pro is thrilled to be playing an important role in pioneering this process.”
“We are following closely the developments with IBT in the US,” said Eric Smith, President and CEO Swiss Re Americas. “We look forward to working with Pro to develop opportunities for our core clients as the IBT market gains a foothold in the US, providing new opportunities for capital management and increased capacity for expansion of insurance coverages.”
Mory Katz, CEO of ProTucket and Pro Global’s US Managing Director added, “ProTucket was the first company that was granted a license to implement Regulation 68.Our recent $35 million in funding is a testament to our commitment in pursuing IBT transactions and the benefits it brings to clients and the US insurance market.”
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