Part VII transfers

Insurance and Wealth Management at Pinsent Masons

Part VII transfers have become increasingly popular in the last few years as insurers have sought solutions to a number of challenges and have been looking to deliver real benefits to their businesses.  Pinsent Masons is recognised as a market leader in the corporate insurance sphere. 

Whilst in certain circumstances in which policies are transferred from one insurer to another a Part VII transfer will be mandatory, it is important to also view Part VII transfers as flexible tools that can be used to achieve a variety of goals, including:

• Effecting an intra‑group transfer
• Selling an insurance business to a third party
• Effecting a demutualisation
• Restructuring insurance funds
• Achieving finality on a book of business in run-off
• Exiting legacy or non-core business
• Conversion of with‑profits policies to non‑profits benefits.

What are the benefits for my business?

The benefits a Part VII transfer can offer include:

• Streamlining the corporate structure
• Operational costs saving and efficiencies
• Minimise financial and regulatory reporting
• Better capital management and improved solvency
• Tax advantages.

Our Part VII Transfer Expertise

We offer a valuable combination of Part VII experience, knowledge and skills.

As one of the Firm’s core sectors, insurance is at the heart of our business and our corporate insurance practice is independently recognised as among the market leaders. Examples of Part VII transfers on which we have advised include:

• Acting for Canada Life on the acquisition of the £875m non-profit annuity business from Equitable Life and the subsequent Part VII insurance business transfer
• Acting for the UK insurance subsidiaries of Genworth Financial Inc. on its intra-group Part VII insurance business transfer to relocate long-term insurance business within the group
• Acting for RSA on the 100% quota share reinsurance and subsequent Part VII insurance business transfer from Harworth Insurance Company, the UK Coal industry’s captive insurer
• Advising a major international insurer on the internal Part VII transfer of life business involving policies held across the EEA
• Advising The Children’s Mutual on its transfer of engagements to Forester Life Limited under Part VIII of the Friendly Societies Act 1992, involving a number of policies held in non-UK EEA countries
• Advising on three Part VII transfers for Reliance Mutual, all involving transfers of long-term business
• Advising on the first Part VII transfer of insurance business within Lloyd’s, the transfer of long-term business to Sterling Life
• Advising LV= on a substantial Part VII transfer of long-term insurance business, including policies held by policyholders resident in the EEA, the Channel Islands and the Isle of Man
• Advising Hallmark Insurance Company Limited on the Part VII transfer of its general insurance business to NIG
• Acted for Privilege Insurance on the Part VII transfer of its entire general insurance business to Direct Line Insurance plc
• Advising a well-known foreign controlled insurer on the transfer of long-term business by way of a Part VII transfer.