Field Fisher Waterhouse advises on complex insurance company transfer
02 August 2007
Field Fisher Waterhouse LLP has successfully concluded the
transfer of the entire business and assets of Hearts of Oak
Friendly Society to Reliance Mutual Insurance Society. This complex
deal involved the first ever friendly society conversion into an
insurance company under the Friendly Societies Act 1992.
Hearts of Oak can trace its roots back to 1842 with the
establishment of Hearts of Oak Benefit Society. Through its
conversion to an insurance company, Hearts of Oak became eligible
to make use of a court-approved transfer scheme under the Financial
Services and Markets Act. A novel use of the mechanics of the
scheme enabled Hearts of Oak not only to transfer its business to
Reliance Mutual but also to restructure its policyholder benefits
at the same time to deliver better security to policy holders.
Nicholas
Thompsell, corporate partner
at Field Fisher Waterhouse, led a firm wide team on the deal
comprising financial
services partner Kirstene Baillie,
corporate
partner Neil
Palmer, real estate partner
Jayne Elkins,
commercial
litigation partner Colin Gibson and
solicitors, Jonathan Burton, Graham
Busby, Ben Lamb and Guy Burman.
Nicholas
Thompsell said: "It is naturally sad that this transaction sees
the end of Hearts of Oak Friendly Society, one of the leading
lights in the friendly society movement for over 100 years, and an
organisation that Field Fisher Waterhouse has represented for many
years. We were, however, pleased to be able to see this
transaction through as it should provide improved security for
Hearts of Oak policyholders. The transaction involved a number
of legal "firsts" including the first conversion of a friendly
society into an insurance company and a unique use of the transfer
scheme mechanics to effect a benefits restructuring as part of the
transfer. We were able to work with Hearts of Oak, Reliance Mutual
and their lawyers DLA Piper, as well as with the FSA to squeeze
these innovations into an ambitious timetable."
DLA Piper advised Reliance Mutual Insurance.
For further press information please
contact:
Louise Eckersley, PR Executive on +44 (0)20 7861 4120
Scarlett Yianni, PR Assistant LLP on +44 (0)20 7861 4795