The new company has been formed under newly-implemented legislation in Rhode Island, which allows companies to transfer their insurance business in a way that is already allowed in other domiciles.
Rhode Island’s Regulation 68 enables run-off portfolios of insurance contracts to be transferred from their previous carrier into a protected cell within a Rhode Island domestic company.
ProTucket is a subsidiary of the service provider Pro Global Insurance Solutions, which provides consulting and outsourcing services to insurance and reinsurance companies.
Artur Niemczewski, CEO of Pro, suggested the new legislation will release billions in trapped capital, adding that it has the potential to improve the capital efficiency of the US insurance industry.
Niemczewski commented: “We estimate the value of US books in run-off, which could benefit from the Rhode Island legislation, to be as much as $100 billion.”
“Over the next five to 10 years we expect this business transfer process to become a standard industry practice and believe that ProTucket will be pivotal in fostering a vibrant run-off market.”
Mory Katz, head of Pro US, commented: “We are honoured to be the first company to be granted a licence to implement Regulation 68 and are passionate about the benefits it will bring to our clients and the US insurance market. We have worked closely with the Rhode Island department of business regulation and greatly appreciate its assistance in the process.”