Part VII Transfers
A “Part VII transfer” is the informal name given to the Court process that enables groups of insurance policies to be moved between two or more EEA insurers, where one is UK regulated, under Part VII of FSMA 2000. The insurers involved can either be in the same insurance/reinsurance group or from different corporate groups. For companies to achieve a successful transfer, they need to appoint an Independent Expert who looks at the impact of the proposed transfer on the various groups of affected policyholders and submits a report to the FSA and the Court.
Deloitte has acted as Independent Expert in several transfers across a range of different clients, including Zurich, Aviva, QBE, RSA, Generali, and XL Re.
Part VII related services that we provide
- Having assisted in a large number of Part VII transfers, including some involving challenges from policyholders, we are very well placed to provide an independent expert and produce the accompanying report. Through this work we have gained experience of the regulatory process (e.g. through liaison with the FSA), the legal process (through liaising with several different law firms and barristers) and are very familiar with the different perspectives that policyholder groups can have of these transfers.
- We can also use this experience to provide consulting services to clients in relation to such transfers – this can range from ad-hoc advice on certain aspects of the process through to complete project management of the overall process.
- Our independent expert work can also include the review of specific areas due to issues arising as part of the analysis carried out by the independent expert. Such areas can include independent reviews of capital models, reinsurance arrangements, reserve reviews and assistance with run off structures.
- Transfers can also occur in Europe outside of the UK regime for Part VII Transfers. We have experience of assisting clients with such transfers in a number of different countries, including the impact of the cross-border merger legislation and the use of the “SE” company structure.
- With our insurance specialists from our Transaction and Reorganisation Services department, we can also provide assistance on the sales process for portfolios of business, internal reorganisations and help simplify the company structure, align statutory and management structures and improve capital efficiency.
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