JDC TECHNICAL EVALUATION REPORT

Subject: Inceptum Insurance Company Limited (Company No: 03581552)

Transferee: British Reserve Insurance Company Limited (00307622)

Reference UID: 6046, 6046.1, 6046.2 & 6046.3

Market Authority: London & International Markets

Case Ref: CR-2025-007138

Secondary Case Ref: BRIC-ORD-992

Date: 23^rd March 2026 – Updated 31^st March, 20^th April & 29^th June 2026

Status: Completed

Case Summary (Tier 4): The High Court of England and Wales is scheduled to hear the application to sanction the Part VII transfer of Inceptum’ s entire UK general insurance and reinsurance business to British Reserve Insurance Company Limited (BRIC) during the week commencing 23 March 2026.

If sanctioned, the transfer is expected to take effect on 31 March 2026, consolidating a significant legacy portfolio within the Marco Capital group.

Supplementary Tier 5 Data: UID 6046.1

• Sanction Confirmation:
  • The Order: The High Court of Justice (Chancery Division) formally sanctioned the Scheme during the week of 23 March 2026.
  • Effective Point: The “Legal Transfer” is confirmed for 23:59 BST on 31 March 2026. At this precise moment, Inceptum is legally discharged from all liabilities, which are simultaneously assumed by BRIC.
• Transferee Technical Profile (The “Landing” Entity):
  • Entity: British Reserve Insurance Company Limited (BRIC).
  • Company Number: 00307622.
  • Regulatory Status: BRIC is the primary UK consolidation vehicle for the Marco Capital Group. This transfer centralizes Marco’s UK legacy portfolios (including those originally from HSBC and R&Q) into a single regulated balance sheet.
• Operational Transition:
  • Run-off Management: Post-transfer, all claims and reinsurance recoveries will be managed by Marco Capital from their London hub at 24 Monument Street, London, EC3R 8AJ.
  • Digital Gateway: The dedicated portal for policyholder inquiries has been updated to InceptumPartVII@marcocapital.net.
• Archive Reference (The “Expert” Opinion):
  • Independent Expert: Simon Sheaf (Grant Thornton UK LLP). His final supplementary report confirmed that the security of policyholders would not be adversely affected by the consolidation into BRIC, providing the technical clearance for the Judge to sign the Order

Case File Supplement: UID 6046.2 (The Inceptum-BRIC Finality)

1. The Transfer Architecture (Ref: CR-2025-007138)

• The Scheme: Inceptum Insurance Company Limited (“Inceptum”) applied to the High Court to sanction the transfer of its entire transferring business to British Reserve Insurance Company Limited (“BRIC”).
• Legal Mechanism: The transaction was executed under Part VII of the Financial Services and Markets Act 2000, which serves as the “Gold Standard” for achieving legal finality in the UK insurance market.
• Court Sanction Cycle: The application was formally heard in the week commencing March 23, 2026, by the Chancery Division of the High Court.

2. Technical Scope of Liabilities

• Asset/Liability Migration: The Court order resulted in the transfer of all contracts, property, assets, and liabilities relating to Inceptum’s UK general insurance and reinsurance business directly to BRIC.
• The “Engine Room” Platform: BRIC, acquired by Marco Capital from Allianz, now serves as the primary regulated underwriting platform for Marco’s consolidated P&C legacy transactions in the UK and London Market.
• Legal Finality Date: The transfer officially took legal effect at 00:01 on March 31, 2026, providing total closure for the Inceptum balance sheet.

3. Strategic Narrative

• Liquidity Generation: The overarching transaction, which saw Marco acquire Inceptum from R&Q, generated approximately £13 Million in liquidity for the seller, inclusive of reinsurance novation impacts.
• Portfolio Consolidation: This move effectively cleans up the “historical tail” of a complex group structure, bringing financial and operational stability to a legacy portfolio that was previously in a state of liquidation-driven uncertainty.

Case File Supplement: UID 6046.3 (Marco Consolidates its UK Legacy Platform)

4. Strategic Completion and Group Integration

Transaction Completion

• Following the successful implementation of the Part VII transfer, British Reserve Insurance Company Limited (BRIC) became the principal regulated UK insurance entity within the Marco Capital Group for the transferred Inceptum business.
• The completion represents the operational conclusion of Marco Capital’s acquisition and integration of Inceptum following its purchase from the former R&Q Insurance Holdings group.

Platform Consolidation

• Rather than operating multiple regulated insurance vehicles, Marco has continued its strategy of consolidating legacy liabilities into a single regulated balance sheet where appropriate.
• The transfer simplifies governance, capital management, regulatory reporting and ongoing claims administration across the Group’s UK legacy operations.

Market Significance

• The transaction demonstrates the continuing evolution of the UK legacy market beyond portfolio acquisitions towards full corporate integration and legal finality.
• It also illustrates how Part VII transfers remain the preferred legal mechanism for achieving permanent balance sheet restructuring where regulatory approval is required.

Editorial Observation

• Together with the contemporaneous IRB Brasil transfer completed by Carrick, the Inceptum-BRIC transaction highlights renewed momentum in UK Part VII activity during 2026.
• Whilst the two transactions differ in scale and origin, both demonstrate the market’s continued reliance on court-sanctioned transfers to achieve legal and operational finality.

JDC Technical Assessment

This case represents more than a routine Part VII transfer. It completes the integration of a former R&Q insurance vehicle into Marco Capital’s long-term operating structure and provides a clear example of how legacy market participants are increasingly using legal finality to simplify corporate structures, strengthen capital efficiency and consolidate specialist run-off platforms.