2017 Commutations & Networking Forum - AIRROC

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2017 Commutations & Networking Forum - AIRROC
Winter 2017-2018

                                         LEVERAGING LEGACY LIABILITY
Vol. 13 No. 3
www.airroc.org

                                           2017 Commutations
                                           & Networking Forum
   IBT OR NOT TO BE? • SOMEBODY’S WATCHING • AIRROC & EECMA SHINE TOGETHER
PRECIOUS METALS • GETTING ARTSY IN JERSEY • HONORING JOHNSON • AWARDS FOR TWO
2017 Commutations & Networking Forum - AIRROC
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2017 Commutations & Networking Forum - AIRROC
EDITOR’S NOTES

A Hazy Shade of Winter                                                                                                                     Maryann Taylor
Our gallant Editor, Peter Scarpato,                            with a “how to” guide to develop, use              the Robotics Process Automation is
has passed the pen to me while he                              and employ this tool. As always, Barbara           changing the insurance industry and
recuperates from scheduled surgery.                            provides practical and pragmatic advice            finally, an interactive session on What is
Warm regards and best wishes from all                          on the implementation of a watch list              Discoverable?
of us on the Publication Committee to                          program in Eyeballing Excellence.                  Tribute was paid to Stephen Johnson
Peter for a swift recovery!                                    Our colleague and reporter                         of Stradley Ronon and former
It has been a long, strange year. As the                       extraordinaire, Connie O’Mara,                     Deputy Insurance Commissioner of
world changes before our eyes, we can                          provides a bird’s eye view on the Mega             Pennsylvania as the AIRROC 2017
count on AIRROC as it continues its                            Superfund Symposium that was held in               Person of the Year. The 6th Annual Trish
steady journey to raise the bar by being a                     Philadelphia. The program provided                 Getty Scholarship was awarded to two
trusted educator, network provider, and                        an in-depth analysis for environmental             recipients, Ashley Myers and Samantha
collaborative facilitator in enhancing                         claims experts in the field in the first,          String, both juniors majoring in Risk
and improving industry standards,                              of what we hope to be many, joint                  Management and Insurance at St.
honoring professionalism and shining                           collaborations between AIRROC and                  John’s University. AIRROC’s charitable
a light on individuals who demonstrate                         EECMA.                                             fundraising initiatives were presented
that hallmark. The adage that many                             Carolyn Fahey, our cherished Executive             to the Loud N Clear Foundation, a New
hands make light work has never been                           Director, highlights the relevance of our          Jersey addiction treatment program, and
exemplified more by the support and                            featured feathered friends on the cover            the Waipa Foundation in honor of our
contribution of our membership to the                          with another successful Commutation                departed friend Doug Andrews, former
AIRROC mission.                                                and Networking Forum in the books.                 Eaglestone CEO. We round out the issue
                                                               One is Silver and the other Gold weaves            with Present Value, by Fran Semaya and
We begin this issue with Luann Petrellis’
                                                               together the hosting state of New Jersey           Peter Bickford.
article Separate but Not Equal in which
she returns to a recurring theme: touting                      where AIRROC members flock each                    On behalf of the Publication Committee,
Rhode Island’s Insurance Business                              year to gather and the importance of               we wish you a joyous holiday season
Transfer (“IBT”) legislation and then                          relationships in this industry. This               with peace and cheer in the
comparing and contrasting it with                              year’s Forum did not disappoint with               New Year!
Connecticut’s division statute.                                an enchanting kick off dinner at the               In the words of Peter
                                                               Zimmerli Museum. The Education                     Scarpato, “Let us hear
Next, Eleni Iacovides provides another
                                                               program showcased presentations                    from you.” l
installment in her continuing series, The
                                                               from renowned professionals in the
Legacy Market: Resistance. Protection.
                                                               industry on a host of topics summarized
Equivalence. Vision. That Order. This
                                                               by Publication Committee members
article provides a look to the future and                                                                          Maryann Taylor, Vice Chair of
                                                               Robert Goodman, Connie O’Mara and
dishes on hot topics being discussed in                                                                            AIRROC Matters, is a Partner
                                                               Ben Gonson. These topics included
the legacy space.                                                                                                  at the New York -based
                                                               UK Employers Liability Portfolios,
Barbara Murray follows her earlier                             a look at the Evolving Insurance                    law firm of D’Amato &
article that introduced the watch list as                      Workforce, the ripple effect of Viking              Lynch, LLP. mtaylor@
an effective management tool (Fall 2017)                       Pump on the allocation landscape, how               damato-lynch.com

AIRROC®Publication Committee
Editor & Chair                        Peter H. Bickford                Carolyn Fahey              Frederick J. Pomerantz                 Design & Illustration
Peter A. Scarpato                     pbickford@pbnylaw.com            carolyn@airroc.org         fpomerantz@goldbergsegalla.com         Myers Creative Services
peter.scarpato@brandywineholdings.com Jenna Buda                       Benjamin Gonson            Francine L. Semaya                     nicole@myerscreative.net
                                      jbuda@allstate.com               bgonson@nicolettilaw.com   flsemaya@gmail.com
Vice Chair                                                                                                                               The AIRROC® Matters Editorial
Maryann Taylor                        Mitchell Cohen                   Robert D. Goodman          Vivien Tyrell
                                      mcohen@wechco.com                                           vivien.tyrell@rpc.co.uk                Board welcomes authors’ new and
mtaylor@damato-lynch.com                                               robert.goodman@saul.com
                                                                                                                                         reprinted with permission articles on
                                     Bina T. Dagar                     Jeffrey D. Grossman        Greg Wyles                             current topics of interest to AIRROC’s
Assistant Editor                     bdagar@ameyaconsulting.com        jgrossman@stradley.com     greg.wyles@aig.com                     membership. The Board reserves the
Connie D. O’Mara                                                                                                                         right to edit submissions for content
                                     Randi Ellias                      Nicholas H. Horsmon        Marketing Consultant
connie@cdomaraconsulting.com         rellias@butlerrubin.com                                                                             and/or space.
                                                                       nhorsmon@law.gwu.edu       Gina Pirozzi
                                                                                                  gina@gpirozzi.com

                                                                                                                            AIRROC MATTERS / WINTER 2017–2018                     3
2017 Commutations & Networking Forum - AIRROC
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Our approach is to listen carefully to you in order to understand your specific
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Foley is a proud Corporate Partner of AIRROC.

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2017 Commutations & Networking Forum - AIRROC
AIRROC Board of Directors
                                                                                                                                    & Officers 2018
                                                                                                                                    Leah Spivey (Chair) Munich Re America
                                                  Vol. 13 No. 3 WINTER 2017–2018 www.airroc.org                                     Michael Fitzgerald (Co-Vice Chair) QBE North America
                                                                                                                                    William Teich (Co-Vice Chair) The Hartford
                                                                                                                                    Marianne Petillo (Treasurer) ROM Reinsurance
                                       Editor’s Notes                                                                               Management Company
                                       A Hazy Shade of Winter Maryann Taylor                                                 3      Jose Martinez, Jr. (Secretary)* CNA
                                       regulatory                                                                                   Karen Amos Resolute Management Services
                                                                                                                                    Andrew Hill Zurich Legacy Solutions
                                       Separate but Not Equal Luann M. Petrellis                                             6
                                                                                                                                    Edward Gibney Vice President, R&Q
                                       AIRROC Board of Directors & Officers 2018                                             9      William Goldsmith AIG
                                       AIRROC Advisory Council 2018                                                         10      Ivan Jaffa RiverStone ReSources LLC
                                                                                                                                    David Kenyon Swiss Re
                                       TOOLBOX                                                                                      André Lefebvre Arrowpoint Capital
                                       The Legacy Market Eleni Iacovides                                                    11      William Littel Allstate
                                                                                                                                    Betsy Mitchell Armour Risk Management Inc.
                                       TooLBOX
                                                                                                                                    David Presley Enstar (US)
                                       Eyeballing Excellence Barbara K. Murray                                              14
                                                                                                                                    Peter Scarpato Brandywine Group of Insurance and
                                       AIRROC                                                                                       Reinsurance Companies
                                       Mega Superfund Symposium Connie D. O’Mara                                            20      Carolyn Fahey (Executive Director)*
                                                                                                                                    Susan Aldridge (General Counsel)* Norton Rose
                                       Present Value                                                                                Fulbright
                                       News & Events / Mark Your Calendar                                                           *Non-Board member
                                       Francine L. Semaya & Peter H. Bickford                                               22
                                                                                                                                    AIRROC Executive Committees
                                       Advertisers in this Issue                                                            22      Governance Committee
                                                                                                                                    Co-Chair William Goldsmith AIG
                                       AIRROC Update                                                                                Co-Chair Bill Littel Allstate
                                       One is Silver and the other Gold
                                                                                                                                    Education Committee
                                       Message from the Executive Director Carolyn Fahey                                    24      Chair Karen Amos Resolute Management Services
                                                                                                                                    Vice Chair J. Marcus Doran Armour Risk
                                       Commutations & Networking FORUM 2017                                                 25
                                                                                                                                    Finance Committee
                                       EDUCATIONAL PANELS
                                                                                                                                    Chair Michael Fitzgerald QBE
                                       • Legacy UK Employers Liability Robert Goodman                                       26      Vice Chair Marianne Petillo ROM Re
                                       • The Evolving Insurance Workforce Connie D. O’Mara                                  27      Marketing/Member Recruitment Committee
                                       • What is Discoverable? You be the Judge! Robert Goodman                             28      Co-Chair David Kenyon Swiss Re
                                       • A New Allocation Landscape Under In Re Viking Pump                                         Co-Chair Ivan Jaffa RiverStone ReSources
                                         Robert Goodman                                                                     29      October Event Committee
                                       • Robotics Process Automation Ben Gonson                                             33      Chair Edward Gibney R&Q Solutions LLC

                                       Thanks to Our Sponsors                                                               33      Publication Committee
                                                                                                                                    Chair / Editor-in-Chief Peter A. Scarpato Brandywine
                                       AIRROC Person of the Year 2017 Stephen Johnson                                               Vice Chair Maryann Taylor D’Amato & Lynch
                                       Connie D. O’Mara                                                                     36      CLIP Committee
                                       Trish Getty Scholarship Recipients                                                           Chair Marianne Petillo ROM Re
                                       Ashley Myers and Samantha String                                                     36
                                                                                                                                    AIRROC Advisory Council
Illustrations / R. Edwards             Photo Montage of Commutations & Networking Forum 2017                                39      David Alberts Mayer Brown LLP
Photos / Jean-Marc Grambert                                                                                                         Debra Hall Hall Arbitrations and SagePoint Solutions
Stephen Magnotta                                                                                                                    Group LLC
                                                                                                                                    Stephen Johnson Stradley Ronan Stevens & Young LLP
Copyright Notice AIRROC® Matters is published three times per year to provide insights and commentary on U.S. legacy                Steve McElhiney EWI Re, Inc.
business, to educate members and the public, stimulating discussion and fostering innovation to advance the industry’s interests.
Publishing and editorial decisions are based on the editor’s judgment of writing quality, relevance to AIRROC® members’ interests   Connie O’Mara O’Mara Consulting LLC
and timeliness of submissions.                                                                                                      Sandra Santomenno Towers Watson
Published articles should not be deemed to reflect the views of any AIRROC® member, unless so stated. AIRROC® endorsement
of any views expressed in articles should not be inferred, unless so stated.                                                        AIRROC Board Liaison
                                                                                                                                    Marianne Petillo ROM Re
AIRROC® Matters magazine is published by the Association of Insurance and Reinsurance Run-off Companies. ©2018. All
rights reserved. No reproduction of any portion of this issue is allowed without the publisher’s prior written permission.
                                                                                                                                    AIRROC MATTERS / WINTER 2017–2018 5
2017 Commutations & Networking Forum - AIRROC
REGULATORY

    Separate but Not Equal
    Division vs. Insurance Business
    Transfer Restructuring Legislation   The RI IBT is a court sanctioned novation
                                         of transferred policies from one carrier
                                         (that does not have to be a Rhode Island
                                         company) to another (that does have to
                                         be a Rhode Island company). Approval of
                                         an RI IBT is a multi-layered, transparent
                                         process that includes both regulatory and
    Recent developments indicate that
                                         judicial review and approval. Like the
    U.S. regulators are responding to    U.K. Part VII transfer, the RI IBT results
                                         in a novation of the transferred policies,
    these market realities. In 2015,     providing finality to the transferring
                                         company.
    Rhode Island passed regulations
                                         In May of 2017, the state of Connecticut
    providing for “insurance business    passed Public Act 17-2 authorizing
                                         domestic insurers to divide. Hartford,
    transfers” for commercial P&C        a Connecticut domiciled carrier that
                                         is one of the state’s largest employers,
    runoff business. The Rhode Island    supported the law. The new statute allows
                                         a Connecticut domestic insurer to divide
    Insurance Business Transfer (RI      into two or more insurers and allocate
    IBT) is modeled on the U.K.’s Part   assets and obligations, including insurance
                                         policies, to the new companies (i.e., new
    VII Transfer that has been British   or resulting insurers). Resulting insurers
                                         are deemed legal successors to the dividing
    law for almost 20 years and has      insurer and any assets and obligations are
                                         allocated to them as a result of succession
    resulted in hundreds of successful   and by direct or indirect transfer. Regula–
                                         tory approval of the plan of division is
    transfers of insurance business.     required. A public hearing may take place,
                                         but no formal court approval is required.
                                         The commissioner must approve a plan
                                         of division unless (a) the interest of any
                                         policyholder or interest holder will not be
                                         adequately protected, or (b) the proposed
                                         division constitutes a fraudulent transfer.
                                         There is no requirement for policyholder
                                         approval.
                                         While there are some similarities between
                                         the Connecticut division legislation and
                                         the RI IBT legislation, the differences in
                                         effect and application are striking.

                                         Connecticut Division Statute
                                         The Connecticut division statute is
                                         very similar to Pennsylvania’s Business
                                         Corporations Law that also provides a
                                         procedure for companies to divide their
                                         business into separate entities. However,
                                         the Pennsylvania division statute has
                                         not enjoyed wide application. It was
                                         used once, in 1996, when the state
                                         insurance department approved a plan
                                         of restructure that placed all of ACE

6   AIRROC MATTERS / WINTER 2017–2018
2017 Commutations & Networking Forum - AIRROC
Luann M. Petrellis

   While the Connecticut                        protections and guaranty fund coverage.          Connecticut Insurance Commissioner
   division legislation may                     Asset adequacy and investments also are          is enforceable outside of Connecticut.
                                                important issues. In addition, a company         Article IV, Section 1 of the U.S.
   provide an option for                        that considers taking advantage of the           Constitution mandates that full faith and
   variable annuities, there are                division statute needs to take into account      credit be given “in each State to the public
   other lines of insurance that                state licensing requirements for the new         acts, records, and judicial proceedings of
   can challenge its effective                  company, notice to policyholders, and            every other state.” It is unclear whether
                                                concerns about policyholder rights and           regulatory approval alone would be
   application.
                                                protections.                                     recognized and enforced in any other U.S.
                                                                                                 state without a court order.
   ----------------------------------           Importantly, the CT division legislation
                                                was promoted by a company that seeks to
USA’s Domestic Property and Casualty            use it for its variable life annuity business.   Insurance Business Transfer (IBT)
Insurance Group’s runoff business within        Variable annuities involve a standard            In contrast, insurance business transfers
Century Indemnity Insurance Company,            and recognized reserving process to              (IBTs) are used worldwide and apply
a subsidiary of Brandywine Holdings.            determine the ultimate payout for the            to all lines of business, both live and
Importantly, this transaction involved          liabilities. Therefore, the variability in       runoff. In the U.K. alone there have been
only commercial property and casualty           reserve outcomes should be minimal,              hundreds of successful transfers, none
liabilities. The process survived legal         and ultimately, the sales process between        of which have subsequently encountered
challenge, but, since then, no company          the buyer and the seller will determine          financial difficulties.
has used the statute.                           whether more or fewer assets are
The Connecticut division statute requires       necessary to consummate the transaction.            Currently, Rhode Island
minimal financial disclosure. The plan of       While the Connecticut division                      is the only state that has
division need only include “the manner          legislation may provide an option for
                                                                                                    legislation providing for IBTs.
of allocating [certain property] between        variable annuities, there are other lines of
or among the resulting insurers … the           insurance that can challenge its effective          The RI IBT is a multi-layered
manner of distributing interests in the         application. This is particularly so with           transparent review process.
new insurers to the dividing insurer or         long term care insurance, which involves
its interest holders … and a reasonable         an entirely different set of risks and              ----------------------------------
description of policies or other liabilities,   considerations, including policyholder
items of capital, surplus or other              protections and rate increases. One of
property the domestic insurer proposes          the key problems for the long term care          The IBT is a flexible restructuring tool. It
to allocate to a resulting insurer.” There      industry is the high level of uncertainty        can be used to combine similar business
is no independent review of financial           associated with long term care reserves          from two or more subsidiaries, putting
information. A public hearing is at             and the reserving practices the industry         all into a single company; to separate out
the discretion of the state insurance           currently uses. In the case of a division,       different books of business, putting them
commissioner and there is no judicial           uncertainty about ultimate liabilities for       into separate companies; or to transfer
review. The commissioner has the                long term care legacy liabilities likely         business between third parties. In contrast,
authority to approve a plan of division         will result in concern that the unknown          the Connecticut division statute applies
unless the commissioner finds that (a)          exposure will be shifted to policyholders        solely to Connecticut domestic companies,
the interest of any policyholder or interest    through future rate increases. In the case       allowing them to separate business only
holder will not be adequately protected,        of variable annuities, the buyer or seller       within their corporate structure.
or (b) the proposed division constitutes a      will absorb pricing risks, but in long term      Currently, Rhode Island is the only state
fraudulent transfer.                            care there is a high probability that future     that has legislation providing for IBTs.
In the case of consumer lines of insurance      experience variables will be borne by the        The RI IBT is a multi-layered transparent
such as long term care, a division              policyholder in the form of rate increases.      review process. It requires notice to all
statute like the one in Pennsylvania or         An additional consideration is that the          policyholders and extensive financial
Connecticut may not provide sufficient          Connecticut division approval process            disclosure by both the transferring
transparency and review requirements            is solely regulatory and whether the             and assuming companies. Both the
to ensure a successful transfer. The            division would be enforceable in all             regulator in the transferring company’s
applicability of the division legislation       relevant U.S. jurisdictions is unclear.          home state and the RI regulator must
to certain lines of insurance raises            Courts would apply the constitutional            approve the IBT plan. The review
important questions regarding its               principle of full faith and credit if asked      process also includes a report of an
utilization particularly as to policyholder     to examine whether the approval of the           independent expert that must evaluate

                                                                                                      AIRROC MATTERS / WINTER 2017–2018         7
2017 Commutations & Networking Forum - AIRROC
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2017 Commutations & Networking Forum - AIRROC
REGULATORY

Separate but Not Equal (continued)

the impact of the transfer on all affected                     the IBT review process far exceeds the                           for insurers and reinsurers. When and if
policyholders, including transferring                          Connecticut division legislation in terms                        Rhode Island (and/or another states) does
and non-transferring policyholders and                         of scope and effectiveness, the Rhode                            adopt legislation that applies the IBT to
policyholders of the assuming company,                         Island statute’s restriction to P&C runoff                       all lines of business, then U.S. (re)insurers
if any. Because of this analysis, a resulting                  does limit its application. There are                            will have an effective, flexible restructuring
good bank/bad bank scenario is avoided.                        ongoing discussions about potentially                            tool with multiple safeguards to protect
There also is a court hearing, during                          expanding the IBT to all lines of business.                      policyholder rights. l
which policyholders have the right to                                                                                           The opinions stated herein are those of the
voice their concerns. If the court finds                       Conclusion: The IBT shows                                        author and do not necessarily reflect those of
that policyholders are not materially                          real promise                                                     Pricewaterhouse Coopers or its affiliates.
adversely affected, then it will approve                       Companies need restructuring tools that
the IBT plan and implement a novation                          have wide application to address a chang-
of the transferred policies. It is only after                                                                                                                      Luann Petrellis is a
                                                               ing business and regulatory environment.
this multi-layered transparent review                                                                                                                              Managing Director with
                                                               The Connecticut division statute does not
process that the transferring company is                                                                                                                           PricewaterhouseCoopers
                                                               have wide application and appears to be
released from liability on the transferred                                                                                                                         specializing in developing
                                                               more a legislative response to the particu-
policies. In short, the RI IBT is a proven                                                                                                                         strategies for insurance
                                                               lar needs of an important local company.
business model with an approval process                                                                                                                            restructuring and
                                                               The IBT is a proven business model, hav-
that is a carefully monitored, transparent                                                                                                                         runoff. She drafted
                                                               ing been used successfully worldwide as a
review that balances the needs of all                                                                                                                              the RI regulations
                                                               restructuring tool for all lines of business.
stakeholders to the transaction.                                                                                                                                   providing for insurance
                                                               The experience of the U.K. runoff market
                                                                                                                                                                   business transfers.
Currently, the RI IBT only applies to                          has proven that a well-designed IBT pro-
                                                                                                                                                                   luann.m.petrellis@pwc.com
commercial P&C runoff liabilities. While                       cess can be an effective restructuring tool

AIRROC
Board of Directors
& Officers 2018

  Back Row – left to right: David Presley (Enstar US); David Kenyon (Swiss Re); Bill Goldsmith (AIG); Bill Littel (Allstate). Middle Row – left to right: Jose Martinez, Jr., Secretary (CNA);
  Marianne Petillo, Treasurer (ROM Re); Karen Amos (Resolute Management Services); Ivan Jaffa (RiverStone ReSources); Andre Lefebvre (Arrowpoint Capital). Front Row – left to right:
  Betsy Mitchell (Armour Risk Management); Ed Gibney (R&Q); Leah Spivey, Chair (Munich Re America); Michael Fitzgerald, Co-Vice Chair (QBE); Carolyn Fahey, AIRROC Executive Director;
  Andrew Hill (Zurich). Not Pictured: Bill Teich, Co-Vice Chair (The Hartford); Peter Scarpato, Editor & Chair of AIRROC Matters (Brandywine Group).

                                                                                                                                        AIRROC MATTERS / WINTER 2017–2018                        9
2017 Commutations & Networking Forum - AIRROC
AIRROC
Advisory
Council 2018

     Front Row, left to right: Sandra Santomenno (Willis Towers Watson); Connie O’Mara; Stephen Johnson (Stradley Ronon); Carolyn Fahey, AIRROC Executive
     Director. Back Row, left to right: Marianne Petillo, Board Liaison (ROM Re); Steve McElhiney (EWI RE); David Alberts (Mayer Brown). Not Pictured: Debra Hall

                                                                                                            Drawing on our Restructuring
                                                                                                             heritage to unlock value for
                                                                                                                  runoff operations.

                                                                                                             A&M drives Performance
                                                                                                           Improvement through strategy,
                                                                                                             operations and analytics.

                                                                                                           We provide Regulatory Support
                                                                                                             to navigate complex and
                                                                                                            challenging environments.

                                                                                                                                                    49016
TO O L B OX

The
Legacy
Market
Resistance. Protection.
Equivalence. Vision.
That Order.

Eleni Iacovides
In The Legacy Market article
that ran in the Spring 2017
issue, we discussed the various                 legacy acquiring market can proudly          a transfer of a line of business that they
exit and capital release tools                  boast zero failure. This, without any        wish to continue to underwrite. How
available to the European insurance             qualification or footnote, delivers the      will the acquirer treat their customers?
market with each providing                      certainty and reputational promise made      Who may still have a policy with the
                                                to clients and, most importantly, to         insurer (a concern that is especially
different degrees of finality and               policyholders.                               relevant in relation to direct policies,
capital relief. The second Legacy                                                            such as automobile or homeowner’s
                                                Across the Atlantic, more than two
Market article which ran in the Fall            years on, the Rhode Island statute           policies)? Who will handle their claims?
issue, discussed the first finality             remains “unused,” while rumours that         Will the acquirer unduly delay payment
statute available in the U.S. and               the first transaction will be announced      of claims? Will the acquirer try to treat
                                                in the early part of 2018 are widespread.    policyholders less fairly given that the
steps taken by other states to adopt
                                                This will be a welcome step in the           acquirer would not be interested in any
a similar framework. This third                 right direction. But why is it taking so     future business?
article in the Legacy series will               long? Why is the U.S. market not as          These are all valid concerns, but express
discuss where we are today and                  enthusiastic as the European market          a failure to see the transaction in its
the concerns and challenges we                  about the availability of legal and/         entirety, which includes looking at
                                                or economic finality for non-core or
understand are currently being                  unwanted portfolios? Certain concerns
                                                                                             it from the acquirer’s point of view.
discussed in the market.                                                                     Acquirers’ core business is insurers’ non-
                                                have been consistently raised that provide   core or unwanted business. In order for
While approaching the end of another            valid and varied reservations of a market    them to be in a position to succeed, to
busy year, the European legacy market           that is normally state-focused and state-    continue to grow, to meet their business
can look back and be proud for the              managed and one that has consistently        plans, to satisfy their shareholders’
transactions signed, approved, closed,          resisted federal legislation on any          expectations and to achieve the plethora
and, of course, last but not least, for those   insurance aspect. I outline below some       of business goals that all businesses
rumoured to be in exclusive discussions         widely-discussed concerns and offer          have, they have to build a reputation of
with the various acquirers. The year may        some thoughts from experience gained in      reliability and credibility so that they can
end with some surprising results, all of        the last few decades in Europe.              continue to acquire more portfolios and
which will add to the growing attraction                                                     to grow their own balance sheet. The
of the legacy space and the increasing          Reputation                                   reputation of the seller is only one side
trust and consequent collaboration              Insurers are understandably concerned        of the same coin. The acquirer is just as
between sellers and buyers.                     about their reputations when considering     keen to preserve its own reputation in
The mechanism is long established, tried        the transfer of a portfolio. This is         order to gain more business from the
and tested, and with no failures. The           particularly relevant when considering       same client, new clients, to grow, and

                                                                                                 AIRROC MATTERS / WINTER 2017–2018          11
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courts, judges and experts, and we use that to each client’s advantage. Every Kennedys CMK
recommendation — whether it means negotiating an early settlement or litigating through
trial and appeal — is made with your long-term business interests in mind.

Kennedys CMK solutions are your advantage

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TO O L B OX

The Legacy Market (continued)

to avoid any regulatory issues that may          It would seem to me that                     that’s a good thing in terms of a global
follow from policyholder complaints. It is                                                    industry like insurance.
obvious how the parties’ interests in any        this step goes a long way to
                                                                                              It would seem to me that this step goes a
transaction are aligned.                         recognising that regulators,                 long way to recognising that regulators,
                                                 no matter where they are,                    no matter where they are, and insurers,
Policyholder protection                          and insurers, no matter                      no matter where they are, have a common
Policyholder protection is a key driver          where they are, have a                       goal: “to supervise insurers and reinsur-
in any transaction approval process. It is                                                    ers in the interest of policyholders and
                                                 common goal…
quite rightly the most important driver                                                       other consumers.” It should follow from
for the approving regulator or court. The                                                     this, that any regulator, whether a U.S.
approving regulator or court must be sat-        ----------------------------------           state commissioner, a regulator of a EU
isfied that policyholders will be protected                                                   member state, or the U.K. courts would
in the hands of the new owner. The             tions would be completed with certainty,       review, assess, and approve a transfer with
examination process before approval is         not concerned with potential challenges        the same overriding principle. Does it not
long and thorough, whether this is done        by other states that do not have similar       then follow that all we need in order for
by a regulator in the EU, or by a judge        legislation; they would not be dependent       the Rhode Island process to be embraced
in the U.K. or Rhode Island. The Inde-         on judicial interpretation on whether or       by the industry and other states is a rela-
pendent Expert’s report, commissioned          not another state court’s decision should      tively small leap of faith?
by the Rhode Island Department, would          receive full faith and credit. Reciprocity
consider all interested parties, and will be   and equivalence are key ingredients to         Status quo or utopia?
an important element of the process as         a level playing field in business transac-
                                                                                              In the EU, 28 member states (until Brexit,
to whether or not the transfer is sound;       tions from which certainty would flow.
                                                                                              hard or soft, hits us) have a uniform legal
the regulator will only approve a trans-       Certainty is key to business transactions
                                                                                              framework and a set of rules that governs
fer if satisfied that policyholders will be    and to business success.
                                                                                              statutory portfolio transfers. The U.S. and
just as protected, if not better protected,
                                                                                              the EU Covered Agreement commits that
after the transfer. Equally, the acquiring     U.S. and EU Covered Agreement                  stated based collateral will be eliminated
insurer must show that its own solvency        The Bilateral Agreement between the            for EU insurers and reinsurers that meet
is sound pre- and post-transfer. Regula-       U.S. and the EU on Prudential Measures         the consumer protection standards
tion 68 provides that both the home and        Regarding Insurance and Reinsurance,           set out in the agreement. So, if the EU
the receiving regulators be involved in        in short, the “Covered Agreement,”             and the U.S. can reach agreement on
the approval process and that the court’s      provides a level playing field between         reciprocity based on the mutual respect
approval is required to effectuate the         U.S. and EU insurers that, principally,        of each other’s legal and regulatory
transfer. Any new process is bound to be       removes the need for authorisation and
encountered with reluctance or doubt.                                                         frameworks, can U.S. states perhaps
                                               collateral in each other’s jurisdiction.       achieve this reciprocity, in time? Or
The success of the process will be entirely    This is certainly a major step in terms of
dependent on the actual success of the                                                        perhaps, take an even bigger leap of faith
                                               recognition, reciprocity, and equivalence      and find a way to agree that this aspect
transactions themselves. And this can          that enables insurers and reinsurers to
only be seen once the process is used.                                                        of insurance law and regulation will be
                                               engage in transactions in each other’s         governed on federal level? This would
                                               territory acknowledging each other’s           certainly achieve a level playing field for
State v. Federal legal framework               regulatory framework, noting the benefits      insurers, states, and commissioners while
and regulation                                 of enhancing regulatory certainty and          providing uniform and equal protection
In the Legacy article published in the         acknowledging that group supervision           for policyholders. Is that not what we
Fall 2017 issue of AIRROC Matters, I           of insurers and reinsurers enables             would call “win win” situation? l
questioned whether or not a EU-style           supervisory authorities to form sound
legal finality would be possible in the        judgments of the financial position of
absence of Federal legislation on this         these groups. The Covered Agreement                                      Eleni Iacovides, Group
aspect of insurance law. State commis-         further “encourages the exchange of                                      Chief Client Officer
sioners are understandably protective          information between supervisory                                          at DARAG Group Ltd.
of their insurance industry and their          authorities in order to supervise                                        e.iacovides@darag.eu
policyholders. A uniform system would          insurers and reinsurers in the interest of
ensure that all transactions are reviewed      policyholders and other consumers.” In
in the same way and are decided within         plain English, it says: if you are regulated
the same legal and regulatory framework,       by a sound regulatory system and respect
thus rendering state issues less relevant.     basic insurance principles, then we trust
In a uniform system, business transac-         that you do without further checks. And

                                                                                                  AIRROC MATTERS / WINTER 2017–2018              13
TO O L B OX

     Eyeballing Excellence
                          3%
     Establishing and Executing an Effective Watch List Process/Policy
     A well-executed watch list process                 - Consistent reporting of facts,                By guiding a consistent approach to
     can significantly benefit P&C                        coverages, and issues;                        identifying which exposures to include
                                                        - Exposure calculations under                   on the watch list and staying abreast of
     insurance companies. From the                                                                      current developments and emerging
                                                          various scenarios;
     initial establishment of the process,                                                              trends, the process owner helps
                                                        - Specific reporting formats;
     which includes identifying which                   - Routine intervals for reporting;
                                                                                                        management better understand and
     exposures and claims to include, to                                                                execute the defined watch list process.
                                                        - Process for updates as new
     the ongoing review of the process                    information emerges;                          Leading practices also suggest that a
     as new exposures and claim types                                                                   company should formally document its
                                                       • Open lines of communication for effec-         watch list process and routinely review
     emerge, the actuarial, claims,                    tive information gathering/sharing among         the process for necessary adjustments.
     and underwriting departments                      underwriting, reinsurance, claims, actu-         A routine review facilitates up-to-date
     significantly impact the success of               arial, and risk management departments;          documentation that reflects existing
     a watch list process. Open lines                  • Reporting of findings to internal stake-       resources and protocols as well as
                                                       holders for potential remediation initiatives.   emerging issues that require assessment
     of communication among these                                                                       and reporting. An organizational culture
     departments can pave the way for                  A clear vision statement serves as a
                                                                                                        driven by open communication across all
                                                       guide in defining exposures or claims
     a successful watch list process.                                                                   stakeholders is well suited to develop and
                                                       assigned to a watch list, including the
                                                                                                        maintain an effective watch list process.
                                                       key members of management (notably
     Creating a watch list                             leaders from claims, actuarial, and
     In order to make effective use of watch           underwriting departments) involved               Identifying watch list exposures
     lists, a company should have a thoughtful         in performing a watch list assessment.           The external environment, including
     and comprehensive process in place to             While this component may appear                  changes in laws and regulations, drives
     determine which exposures to monitor              obvious, a company should not                    the exposures selected to appear on a
     and how management should consider                underestimate the value of the vision            watch list. Much like organizational goals
     this information. Watch list processes of         statement in maintaining the proper              and objectives, which change over time,
     leading companies typically include the           focus of the watch list over time.               the evolving nature of watch list exposures
     following items:                                                                                   necessitate routine assessment of and
                                                       Critical to a successful watch list process
     • A vision statement to establish the goal        is the determination of the process              adjustment to the criterion underlying the
     of the watch list program;                        owner and the associated roles and               watch list assessment process.
     • Clear ownership and lines of                    responsibilities. The owner of the watch         The criteria used to assess exposures for
     accountability;                                   list process, typically a chief reserving        inclusion on a watch list may include:
                                                       actuary, a claims department leader,
     • A defined process that includes:                                                                 • Types of coverage, time periods,
                                                       or another executive, plays a critical
     		- Identification of key risks to assess;        role in establishing accountability              and geographical regions of business
       - Assignment of appropriate and                 and facilitating the timely sharing of           underwritten;
         available resources;                          information among various stakeholders.          • Limits and attachment points;

       Developments on claims                            Identification of new exposures to               Other industry emerging exposures
       currently reported                                add to the watch list                            not yet prime for formal addition to
                                                                                                          the watch list

       Coverage interpretations/rulings                  Trigger for placing the loss on the list         Types of losses
       Changes in filing trends or exposures/damages     Filing trends                                    Coverages impacted
       Industry perspective/strategies/reserving         Coverage and jurisdictional issues               Filing and exposure trends
       practices                                         Exposure/damages estimates
       Updates on resolution strategies                  Applicable industry reserving trends
       Revisions to applicable scenarios                 Proposed resolution strategies

14   AIRROC MATTERS / WINTER 2017–2018
Barbara K. Murray
Information included on a watch list

 Watch list triggers                       Existing claims                        Potential claims                                  Reinsurance profile

 Loss will potentially exceed a defined    Claim number                           Lines of business                                 Reinsurance program structure
 financial threshold                       Lines of business                      State in which the loss occurred                  Gross/net positions reflected in the
  • Assess from a gross and net                                                   Potential coverages at risk                       potential outcome scenarios
                                           State in which loss occurred
   perspective                                                                                                                      generated
                                           Policies currently exposed             • Years underwritten
 • Consider what is material                                                                                                        Notice provision and confirmation of
                                           • Period/terms                         • Coverages afforded
 • Address losses impacting multiple                                                                                                notice issued to the reinsurers timely
   insureds                                • Coverages afforded                   • Volume of policies written
                                                                                                                                    Issues that may give rise to reinsurer
 Loss type has been defined as a trigger   • Policy limits*/attachment points     Exposure
                                                                                                                                    disputes
 •    Historical adverse development       Exposure                               • Limits exposed/attachment points
 •    Severity of injury                   • Remaining limits/aggregates          • Potential range of damages
 •    Filing trends                        • Deductible limits/balances
                                                                                  Description of potential loss (filing
 •    Outcomes may have significant        • Underlying coverage exhaustion       trends/severity)
     impact on other claims or             • Loss/expense payments to date
     underwriting strategies                                                      Jurisdictional/coverage issues
                                           • Estimated full level of damages
 Emerging losses that may present                                                 Potential outcomes
 significant exposure in the future        Description of loss
                                           Date of loss
 Claims in which several insured risks
 are subject to a common loss              Jurisdictional/coverage issues
                                           Potential outcomes

                                                                                           *written and remaining per occurrence / aggregate policy limits by year and coverage type

• Legal trends such as new court filings,                 their deep knowledge of the underlying                  Claims personnel may carry out
rulings regarding legal interpretations                   exposures, claims personnel often have an               scenario testing and litigation risk
and procedural requirements, and jury                     early awareness of emerging loss trends                 analyses due to the complex nature of
verdicts;                                                 and case law changes, which may impact                  watch list exposures and the associated
• New claim filings (inclusive of                         the selection of watch list claims or loss              coverage interpretation issues, such
underlying carrier exposures), as well as                 types. A well–run claims department                     as what constitutes an occurrence
reserve and payment patterns by industry,                 will establish processes for routinely and              or the allocation of exposure across
company, and carrier;                                     consistently tracking key issues and the                various defendants or carriers. By
• New business strategies; and                            associated exposures.                                   carrying out several assessments, each
• Discontinued business exiting strategies.               Leading claims department watch list                    incorporating different assumptions
                                                          processes typically include a quarterly                 as to legal outcomes and ultimate
Asbestos, pollution, health hazard, and
                                                          assessment, as per chart on page 14.                    damages, the claims department
other complex exposures are perhaps
                                                          The head of the claims department                       can provide management and the
most commonly found on watch lists,
but prescient companies effectively                       typically performs an assessment, relying               actuarial department a range of
utilize their claims and actuarial                        on information he or she gathers from                   possible outcomes to consider. These
departments to stay abreast of current                    the claims team, underwriters, and                      assessments facilitate early identification
trends and identify emerging exposures                    reinsurance departments (similar to a                   of claims with the potential to breach
and new claim types to incorporate into                   routine large loss assessment process)                  excess coverage layers and, thus, early
their watch list process.                                 and shares the findings with the actuarial              notification to reinsurers. Without such
                                                          department. The assessment includes                     assessments, these claims are at risk for
The role of the claims department                         a factual investigation incorporating                   future reinsurance denials due to late
Claims personnel typically play an                        the applicable coverage parameters and                  reporting of claims, unexpected reserve
important role in identifying exposures                   assessment of potential liabilities under               development, and poorly developed
to include on a watch list. Thanks to                     various scenarios as follows.                           litigation strategies.

                                                                                                                        AIRROC MATTERS / WINTER 2017–2018                              15
Moving Forward.
                                                  Meeting Goals.
                                                  Progress Realized.
                                                  Our lawyers can help you with:

                                                  ƒ    Regulatory issues applicable to run-off business and
                                                       associated transactions

                                                  ƒ    Assumption reinsurance and loss portfolio transfers
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 National and                                     ƒ    Litigation and arbitration of insurance, reinsurance
 International Reach                                   and agency matters

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TO O L B OX

Eyeballing Excellence (continued)

The role of the actuarial department            premium values, underwriting office and       list process should rely on adherence
                                                current underwriting goals/criteria.          to sound policies that encourage both
The actuarial function fills several key                                                      compliance and accountability.
                                                Companies should regularly re-assess
roles in the watch list process. Because
                                                the criteria for inclusion of claims          The implementation of a robust watch
they typically analyze aggregate data, ac-
                                                and exposures on a watch list and the         list process will promote the timely
tuaries have a different perspective from
                                                related assessment process in light of the    identification of significant claims,
claims professionals and may identify dif-
                                                continual evolution of organizational         facilitate appropriate reserving and
ferent potential watch list exposures and
                                                goals and objectives, as well as the          underwriting actions, optimize litigation
emerging claim types by leveraging their
                                                external environment (e.g., changes in        and resolution strategies, and lead
knowledge of industry and reserving
                                                laws and regulations).                        to improved overall underwriting
trends. Actuaries also may be responsible
                                                                                              results. Successful watch list practices
for quantifying the potential liability as-
sociated watch list claims, as well as their
                                                Challenges and opportunities                  include a multidisclinary team of
                                                                                              stakeholders defining watch list
impact on underwriting and incurred but         One of the most common challenges in
                                                                                              triggers and monitoring the assessment
not reported (IBNR) reserves. Because           a watch list process is the timeliness of
                                                                                              process. Leading practices suggest that
claims and actuarial professionals have         updates, assessments, and quality review.
                                                                                              companies leverage this information in
different perspectives, facilitating collabo-   The difficulty lies in the speed with
                                                                                              developing and implementing long-term
ration between these functions is advan-        which unexpected new developments
                                                can occur in the underlying exposures         underwriting and claims strategies. l
tageous to insurers.
                                                or external influences. Accordingly, the      Vicki A. Fendley contributed to this article.
Information included on a watch list            process for adding or updating items on
                                                the watch list should be clear and flexible
All company watch lists do not include                                                                                      Barbara K. Murray,
                                                enough to allow authorized individuals
the same information. The data, which           to add new items and make ad hoc                                            Director at PwC
is contingent upon the nature of the risk,      updates as new claims information                                           Actuarial Services.
legal issues, and the underlying business       or developments in pertinent events                                         barbara.k.murray@
or exposure, may include what is in the         emerge. Companies should maintain                                           pwc.com
chart on page 15.                               available resources to carry out
                                                assessments when the need arises.
Using watch lists for more than the core
claims and actuarial assessments may            Aligning a watch list assessment with
require a company to collect additional         the reserve study schedule can provide
data. For instance, a company that wants        efficiencies and valuable insights that       For more information: Marc Oberholtzer, Principal,
to consider watch list exposures in             management can leverage to make               marc.oberholtzer@pwc.com, Samantha Lee, Senior
ongoing underwriting and pricing also           decisions. As with any organizational         Associate, Samantha.x.lee@pwc.com and Vicki
will need to gather rating information,         process, quality assurance of the watch       Fendley, Director, vicki.a.fendley@us.pwc.com.

                                                                                                                                                   SM

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                                                                                                  AIRROC MATTERS / WINTER 2017–2018                     17
F E A T U R ED
                            CONTINUING   E

                            Mega Superfund Symposium
                            ACRONYM FEST: ICYMI1, EECMA2 and AIRROC3
                            In a joint undertaking on September 7th in Philadelphia,
                            EECMA and AIRROC presented a symposium on Mega
                            Superfund Sites. In what seemed like a veritable snowstorm
                            of acronyms, participants learned about the challenges that
                            arise under CERCLA4 in dealing with Mega Superfund Sites
                            such as Portland Harbor, the Lower Passaic River, and other
                            contaminated sediments sites where remediation costs are
                            estimated in the billions. Panelists discussed key developments
                            in the remediation and cost sharing negotiations of the largest
                            and most complex environmental sites in the country as well
                            as innovative strategies for dealing with the financial and
                            technology challenges that they pose.
                            EECMA is an informal association of major and minor, domestic
                            and international, property and casualty insurers and reinsurers.
                            The members of EECMA are focused on continued education
                            about the many issues surrounding environmental, asbestos, and
                            other long-term exposure litigation that continues to challenge
                            our policyholders and us. Every year, EECMA organizes a two
                            day conference that includes industry specific cutting-edge topics
                            presented by attorneys, consultants, and insurance professionals
                            in the U.S. and throughout the world who are experts in their
                            respective fields. EECMA’s 2018 Conference will be held in
                            Orlando, Florida on April 25-27, 2018.
                            CWF5 stated that, “AIRROC was very pleased to have the
                            opportunity to collaborate with EECMA to produce this
                            program. AIRROC hasn’t done a program that focused on these
                            issues before and they are important to our members. A big
                            thanks to EECMA and our sponsors for helping to make this
                            happen.”
                            Gregory Kelder offered, “EECMA appreciated the partnership
                            with AIRROC and the opportunity to develop an agenda and
                            assemble a group of experts that focused on the multifaceted
                            complexities of large Superfund Sites.”
                            The event got rave reviews from those who were there:
                            “Excellent comprehensive deep dive by fantastic speakers
                            into what they said may potentially be a multi-billion dollar
                            environmental claim exposure for the insurance industry.
                            EECMA and AIRROC provide the very best bang for the buck in
                            their formidable knowledge sharing.” Michael Diggin, Swiss Re.
                            “Speakers were prepared and interesting. Excellent informative
                            event.” Laura Archie, Argo Group.
                            “Great deep dive into sediments, no pun intended. The
                            collaboration between EECMA and AIRROC was a winning
                            combination.” Leah Spivey, Munich Re. l
photos / Stephen Magnotta

                            Connie D. O’Mara, connie@cdomaraconsulting.com
                            1.   In Case You Missed It
                            2.   Emerging and Environmental Claims Manager Association
                            3.   Association . . . oh, you know this one
                            4.   Comprehensive Environmental Response, Compensation, and Liability Act
                            5.   Carolyn “Wadsworth” Fahey

20                          AIRROC MATTERS / WINTER 2017–2018
PRESENT VALUE

     News & Events
                                                                                                       OPTIS partners, the number of insurance
     Regulatory News                                    Covered Agreement Update
                                                                                                       agency mergers and acquisitions rose
                                                        Both the U.S. and the European Union           from 350 for the first nine months of
     Federal Insurance Office                           (EU) signed the Covered Agreement on           2016 to 457 in 2017. Further, the largest
     A bill to reform the Federal Insurance             September 22, 2017. Full implementation        M&A transaction reported in the first
     Office (FIO) was introduced in the U.S.            in the U.S. may take up to five years          half of 2017 was from the brokerage
     House of Representatives (H.R. 3861,               until all U.S. jurisdictions amend their       section: the acquisition of USI by an
     the Federal Insurance Office Reform                current reinsurance collateral requirement     investor group that included private
     Act of 2017). Under H.R. 3861, the                 laws and regulations to conform to the         equity firm KKR and Canadian pension
     FIO would essentially be barred from               mandates of the Covered Agreement. At          fund CDPQ for $4.3 billion.
                                                        the signing of the Covered Agreement,
     domestic insurance issues, including
                                                        the U.S. issued a policy statement, which                       On the legacy front, the
     the authority to engage in broad
                                                        provided that the Covered Agreement                             most interesting
     information gathering activities or issue
                                                        “affirms the U.S. system of insurance                           transaction (up to our
     subpoenas. The FIO would be moved to
                                                        regulation, including the role of state                         column deadline) was a
     the Office of International Affairs within
                                                        insurance regulators as the primary                             portfolio acquisition by
     the U.S. Treasury Department and be
                                                        supervisors of the business of insurance.”                      insurance and
     largely limited to international matters.
                                                        U.S. regulators were pleased with the          reinsurance legacy specialist Compre
     State insurance regulators and many in
                                                        reaffirmation of the authority and primacy     Group (“Compre”) from Swiss company,
     the insurance industry agree with the              of state regulation and insurers and           AXA Insurance Ltd (“AXA”), formerly
     proposed diminished authority of the FIO.          reinsurers are elated with the removal         Winterthur Swiss Insurance Company.
                                                        of “local presence” requirements in EU                                 The acquired
     Cybersecurity                                      jurisdictions. While EU insurers and                                   portfolio of
                        The National Association        reinsurers will benefit from the provisions                            insurance and
                        of Insurance                    of the Covered Agreement, post-Brexit,                                 reinsurance
                        Commissioners adopted           Lloyds and London insurers will have to                                business in run-off
                        the Insurance Data              wait to see if a similar agreement will be                             was underwritten
                        Security Model Law on           negotiated between the U.S. and United                                 by RW Gibbon
                        October 24, 2017. The           Kingdom.                                       (Underwriting Agencies) Ltd. and RW
     model law, which was adopted after seven                                                          Gibbon & Son Ltd. (the Gibbon pools)
                                                                                                       between 1962-1964. Compre has
     versions and much criticism from the
     industry, includes many, but not all, of the
                                                        Industry News                                  provided AXA with finality in all
     requirements of New York Regulation                                                               respects regarding its participation in the
                                                                            A report issued in
     500 (23NYCRR500), creates rules for                                                               Gibbon pools for an undisclosed sum.
                                                                            November by Willis
     insurance companies, producers, and                                                               According to its press release, the
                                                                            Towers Watson P.L.C.
     other licensed entities “covering data                                                            acquisition represents Compre’s 26th
                                                                            predicted that merger
                                                                                                       portfolio deal and 10th acquisition of a
     security, investigation and notification of                            and acquisition
                                                                                                       company in run-off.
     breach. The requirements include the                                   (M&A) activity in the
     creation and maintenance of information            insurance industry should increase for
     security program based on ongoing risk
     assessment, overseeing third-party
                                                        the rest of 2017 and several years to come.
                                                        In fact, M&A activity continued strong
                                                                                                       New Member
     service providers, investigating data              into the second half of 2017 – just not in     SunPoint Reinsurance limited
     breaches and notifying regulators of a             the insurer and reinsurer sectors.             (“SunPoint”), an international run-off
     cybersecurity event.”                              According to an October 2017 report by         reinsurance company, has become a

          10		 Alvarez & Marsal                                 30		 Freeborn              16		 Morris Manning &        2		 Saul Ewing Arnstein &
       ADVERTISERS               42		 Budd Larner               38		 Gardere                    Martin, LLP                  Lehr LLP
            IN THIS              8		Butler Rubin Saltarelli
                                      & Boyd LLP
                                                                17		 Genpact
                                                                12		 Kennedys CMK
                                                                                           43		 Mound Cotton Wollan &
                                                                                                Greengrass LLP
                                                                                                                        42		 Squire Patton Boggs
                                                                                                                        42 Stradley Ronon
              ISSUE              37		 Crowell Moring            35		 Locke Lord LLP        44		 Norton Rose Fulbright   34 Stroock & Stroock &
                                 31		 EY                        19		 Mayer Brown           42 Rubin, Fiorella &               Lavan
                                 4		 Foley & Lardner LLP                                        Friedman LLP            18		 White and Williams LLP

22   AIRROC MATTERS / WINTER 2017–2018
Francine L. Semaya & Peter H. Bickford
member of AIRROC. “As a veteran of           intellectual property, immigration,
the legacy insurance and reinsurance         and foreign investment services to           WINTER 2018
arena,” said SunPoint’s CEO—Global           Saul Ewing’s focus on representing
Head of P&C Run-off—Karl Wall, “I            insurers, reinsurers and others in the
cannot overemphasize the value of            insurance industry.
AIRROC membership to SunPoint.
Whether the objective is to network                              Sean Thomas
with others who face similar challenges                          Keely, formerly
in runoff, to collect reinsurance balances                       with Hogan Lovells
on legacy books, or to resolve related                           in New York, has                 JANUARY 11-13
disputes in a commercial manner,                                 joined Freeborn             ABA Torts Trial and Insurance
AIRROC is a valued and trusted partner.                          & Peters LLP                   Practice Section (TIPS)
AIRROC’s mission of promoting the            (“Freeborn”) as a partner in the             44th Annual Midwinter Symposium
interests of entities with legacy business   Litigation Practice Group and a                       Coral Gables, FL
and enhancing knowledge both within          member of the Insurance and
                                                                                                www.americanbar.org
and beyond the reinsurance arena is yet      Reinsurance Industry Team in
another important aspect of AIRROC           Freeborn’s New York City office.
membership that SunPoint recognizes.”        Freeborn, an AIRROC partner law                        JANUARY 17
                                             firm, recently expanded into the New            AIRROC Regional Education Day
                                             York City market through its                            New York, NY
People (and firms)                           combination with Hargraves,                            www.airroc.org
                                             McConnell & Costigan P.C. Sean
on the Move                                  can be reached at skeely@freeborn.com.                    FEBRUARY 7-9
                   In October, the                                   American                        IAIR 2018 Insurance
                   Insurance &                                       International                  Resolution Workshop
                   Reinsurance Legacy                                Group (“AIG”)                      Scottsdale, AZ
                   Association (“IRLA”),                             made a couple                      www.iair.org
                   a UK-based market                                 of important
                   body for insurance                                additions to its              FEBRUARY 13-15
and reinsurance legacy professionals,        legal and regulatory presence by
                                                                                                RAA Cat Risk Management
elected a new director, Darren Truman        naming Lucy Fato as General
                                                                                                       Orlando, FL
of Enstar Group. Mr. Truman joins Paul       Counsel and Thomas Leonardi as
Corver of R&Q, Simon Barnes of Zurich        Executive Vice President,                            www.reinsurance.og
Centrally Managed Business and Mark          Government Affairs, Public Policy
Hallam of Swiss Re, who were                 and Communications. Fato, who has                        MARCH 13-14
unanimously re-elected. Also, at its         held several top legal positions in the                  AIRROC Spring
annual awards dinner in November, the        insurance industry including at                        Membership Meeting
IRLA presented Bob Howe of AXA               Marsh & McLennan, will oversee                            New York, NY
Liability Managers (UK) Branch with its      AIG’s global legal, compliance,                          www.airroc.org
Service to Legacy Award for 2017, and        regulatory, and government affairs
Victor Nelligan of PriceWaterhouse–          function. Leonardi, who previously
Coopers LLP as its 2017 Legacy Young                                                                  MARCH 24-27
                                                                 served as the
Professional.                                                    Commissioner of                    NAIC Spring Meeting
In September, Philadelphia-based                                 Insurance at the                     Milwaukee, WI
law firm Saul Ewing merged with                                  Connecticut                          www.naic.org
Chicago-based Arnstein & Lehr to                                 Insurance
form the firm of Saul Ewing Arnstein                             Department, and as
& Lehr LLP, with 400-plus attorneys in       an investment banker and venture
Delaware, Florida, Illinois, Maryland,       capitalist, will oversee AIG’s global      If you are aware of items that may qualify for the next
Massachusetts, New Jersey, New York,         public policy and government affairs       “Present Value,” such as upcoming events, comments or
Pennsylvania, and the District of            and build lines of communication           developments that have, or could impact our membership,
Columbia. In addition to expanding its       with the numerous regulators that          please email Fran Semaya at flsemaya@gmail.com or Peter
territorial reach, the combined firm is      oversee AIG at the state, federal, and     Bickford at pbickford@pbnylaw.com.
expected to add expertise in the fields of   international levels. l

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