Client Assignment West of England Ship Owners Mutual Insurance Association
West of England (London) to West of England (Luxembourg)
Part VII Programme Management, Project Management & Technical Consultancy
Providing technical consultancy and programme/project management on the Part VII transfer of the whole of the insurance and reinsurance business carried on by The West of England Ship Owners Mutual Insurance Association (London) Ltd to The West of England Ship Owners Mutual Insurance Association (Luxembourg). Both associations were marine insurers known as “P&I clubs” providing protection and indemnity (‘P&I’) and other cover for marine risks, including long-tail occupational disease risks.
WoE London’s business dated back to 1886 and key challenges included identifying all relevant historic insurance and reinsurance business due to the long-tail nature of the P&I risks and developing suitable and cost-effective communication waivers. Other unique aspects were mutuality, reinsurance and the specific inter-action with the Part VII transfer and Solvency II regulation. Worldwide and EEA jurisdictions needed careful consideration due to the global nature of the insured risks as well as the transfer being cross-border from UK into Luxembourg.
Working closely with the Finance Director and General Manager, I advised both parties and designed and managed the overall programme as well as individual workstreams including managing external advisors (including legal, independent expert and tax). Critical elements were successfully managing the relationship and all document delivery to PRA & FCA as well as containing programme costs to a challenging budget target.
The transfer was completed after obtaining extensive mailing waivers and all insurance and re-insurance business was successfully transferred from WoE London to WoE Luxembourg, allowing WoE Luxembourg to simplify its business and reduce future operating costs.
Mark Pender, Finance Director & Company Secretary
"We thought our relatively simple and non-controversial transaction would be straightforward but at least we recognised at the start that we needed expert help.
We had not appreciated the complexities and requirements of the Part VII process so it is lucky we did. It was also lucky that we found Avanti and our good judgement that we decided to go with them rather than a “big-league” professional firm, where the costs would have been much higher and we may not have got such specific and appropriate attention.
Without Paul it is highly doubtful that we would have met our deadlines and possibly the transfer would not have been successful at all."