How we helped a large international insurer by providing the Independent Expert report their Brexit Part VII transfer which was successfully sanctioned by the High Court despite significant time pressures.
Stewart was the Independent Expert on the Part VII transfer for a large international insurer. The Part VII was to provide business continuity in the event of a “Hard Brexit”.
Under Brexit, the insurer would lose its passporting rights allowing it to conduct business in Europe. The insurer's solution was to set up a Luxembourg entity into which it would transfer its non-UK European business.
We used a collaborative approach, with regular meetings and calls with our client to discuss and address any issues as they arose.
To maximise efficiency, wherever possible, we based our review on existing actuarial reports and other evidence that was readily available. We undertook selected independent analysis to supplement the evidence provided by our client and to ensure we were demonstrating clear independence. We maintained an evidence and challenge log which allowed us to effectively track data received and outstanding information, together with issues we had raised with the insurer and their successful resolution. We also met with the regulators early on to discuss key points related to the transfer.
We provided a positive assessment in all of the areas within the scope of the IE work. In the small number of places where we raised potential issues (eg access to compensation schemes), we flagged these early and worked with our client to address them. Both the judge and the QC in court complimented the clarity of our reports and how these helped achieve a smooth sanction of the transfer. This case study demonstrates our flexible approach and our ability to anticipate the challenges from regulators.
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The key to a successful Part VII transfer are careful planning and clear communication.