27 July 2026 • Page 2 • Reinsurance & Transactions

Community Re transfer of 50,000 LTC policies, is sanctioned by the  Courts

The High Court of Justice has approved the Part VII transfer of Community Reinsurance Corporation Limited to a Bermuda special purpose reinsurer, completing another significant legal milestone in the continuing evolution of the legacy (re)insurance market.

The transaction, sanctioned following hearings before Mrs Justice Thornton during June 2026, transfers approximately 50,000 US long-term care (LTC) insurance policies together with around $3.2 billion of associated reserves. 

The judgment represents the seventh Part VII transfer to receive Court approval during the year and further reinforces the Part VII mechanism as the market’s preferred route for achieving legal finality in complex insurance restructurings.

Carrick Group, which acquired Community Re in 2020, has pursued the transfer as part of its long-term strategy to simplify the legal structure of the business, strengthen capital efficiency and place the liabilities within a dedicated run-off environment specifically designed for their ongoing management. 

The completion of the transfer enables the Group to focus operational expertise on long-duration liabilities while providing greater certainty for policyholders, regulators and counterparties.

The Court confirmed that all policy liabilities, contractual rights and associated obligations have transferred to the receiving reinsurer, together with the assets supporting those liabilities, subject only to the limited statutory carve-outs provided under Part VII legislation. The judgment therefore delivers complete legal continuity while preserving policyholder protections throughout the transfer process.

As with previous Part VII transactions, the application was supported by extensive actuarial analysis, legal documentation and independent expert evidence demonstrating that the transfer would not materially adversely affect policyholders or creditors. All known interested parties were formally notified and afforded the opportunity to raise objections before the Court reached its final decision.

The transaction is particularly notable because it further demonstrates the continued suitability of the UK Part VII framework for facilitating the orderly restructuring of mature life and long-term care portfolios. As insurers continue to manage increasing levels of legacy liabilities generated over previous decades, legal transfer mechanisms remain central to achieving capital optimisation and operational efficiency without compromising policyholder security.

For Carrick Group, the successful completion of the transfer represents another important stage in building a specialist platform focused on legacy insurance management. 

By consolidating liabilities within an appropriate legal structure, the Group is better positioned to optimise claims management, improve operational governance and deploy capital more efficiently across its wider portfolio.