Practice Areas & Industries: Eversheds Sutherland (US) LLP

 





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Practice/Industry Group Overview

Leaders in reinsurance, Sutherland helps clients create and defend sophisticated, tax efficient reinsurance structures to support business goals.

Sutherland’s comprehensive reinsurance practice draws on the firm’s deep experience across the insurance industry and familiarity with all aspects of reinsurance both in the United States and internationally. We constantly strive to keep ahead of the ever-changing regulatory environment across all jurisdictions. We develop reinsurance structures either on a discreet basis or as part of an acquisition or larger restructuring. We draft reinsurance agreements for property-casualty and life insurance clients, advising on state credit for reinsurance matters and drafting reinsurance trust agreements. We also aid clients during internal reviews of their reinsurance needs and programs.

Sutherland takes a multidisciplinary approach to reinsurance, utilizing the talents of not only our reinsurance counsel but also attorneys who focus on mergers and acquisitions, finance, tax, regulatory matters and litigation. As a result, we address the full scope of our clients' reinsurance concerns and advise them on how best to achieve their commercial objectives. We further support their business objectives by engaging in long-term relationships that allow us to anticipate their legal needs as the industry evolves.

Our practitioners draft reinsurance agreements and arrange reinsurance transactions. We are intimately familiar with collateral protection devices as well as interim and permanent administrative services agreements. We regularly handle coinsurance, modified coinsurance, coinsurance with funds withheld and assumption reinsurance. We have decades of experience aiding clients with reinsurance matters in the United States, the Caribbean and Europe, and report to our clients on regulatory developments globally as developments warrant.

Why Sutherland
Multidisciplinary approach.
In addition to our insurance lawyers, those clients with reinsurance concerns can rely on the support of our merger and acquisitions team, tax lawyers, finance attorneys, regulatory attorneys and litigators. We address the full range of issues and craft creative solutions.

Industry experience. We deal with virtually every aspect of the business from creating discreet reinsurance structures to dealing with runoff issues, from life insurance securitizations to reinsurance sidecar matters.

Domestic and international reach. Our reinsurance practitioners are comfortable with the regulations and legal codes of the United States, the Caribbean and Europe. Moreover, our practice has enduring connections with other members of the industry that enable us to deal effectively and quickly across international boundaries.

Regulatory knowledge. Our attorneys stay on top of recent developments in reinsurance regulations, from the relevant portions of Dodd-Frank and various state laws to Britain's replacement of the Financial Services Authority with the Prudential Regulatory Authority and the new European Union regulations.

Proactive advice. We know the industry, regulation and our clients' business goals and proactively advise clients by sharing recent news as well as aiding them with reviews of their reinsurance programs and projected reinsurance needs.

Nuts and Bolts
Our reinsurance practice includes:

  • Drafting facultative, treaty, excess of loss and catastrophe reinsurance agreements for property-casualty risks, as well as drafting related reinsurance trust agreements
  • Drafting of life and annuity reinsurance agreements both in standalone transactions and in connection with sales of business units, including all related administrative services agreements, trust agreements and other security agreements
  • Development and securitization of synthetic life insurance products, letters of credit and reinsurance transformer transactions providing protection for guaranteed benefits
  • Securitization of property and casualty reinsurance cash flows
  • Reinsurance litigation and arbitration
  • Tax issues related to reinsurance transactions

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Sutherland takes a multidisciplinary approach to reinsurance matters bringing together relevant experience in insurance M&A, regulation, tax, finance, international law and litigation.

Selected Experience
Sutherland represents ING in XXX and AXXX reserve funding and capital solutions for annuity products.
We negotiated reinsurance agreements and financing and security documents governing billions of dollars in letters of credit, trust notes and demand collateral provided by a variety of banks and reinsurers to finance ING’s XXX and AXXX reserves and to manage capital volatility associated with certain annuity products. We also assisted ING in establishing the reinsurance captive subsidiaries used in these transactions.

Represented The Hartford in the strategic sale of its life insurance business to Prudential.
Represented Hartford Financial Services Group, Inc. in the $615 million sale of its individual life business to Prudential Financial, Inc., a strategic disposition in support of The Hartford’s plans to focus on its property and casualty, group benefits and mutual funds businesses.

Sutherland attorneys advise Lloyd's of London on establishment of Equitas.
Sutherland attorneys advised Lloyd’s in its establishment of Equitas and the reinsurance of all of Lloyd’s pre-1993 liabilities to Equitas. They represented Lloyd’s in the $14 billion reinsurance transaction between Equitas and Warren Buffet’s National Indemnity Insurance Company and the subsequent UK Part VII transfer of all such liabilities. Equitas resolved much of the financial difficulty that had threatened Lloyd's 300-year existence.


 
 
Articles Authored by Lawyers at this office:

DOL Issues Additional FAQs Related to New Fiduciary Rule
Eric A. Arnold,Wilson G. Barmeyer,Bruce M. Bettigole,Nicholas T. Christakos,Adam B. Cohen,Thomas W. Curvin,Olga Greenberg,Dodie C. Kent,Clifford E. Kirsch,Michael B. Koffler,Susan S. Krawczyk,Ben Marzouk,Carol T. McClarnon,Michael R. Nelson,S. Lawrence Polk,Stephen E. Roth,Brian L. Rubin,Vanessa A. Scott,Cynthia R. Shoss,Holly H. Smith,W. Mark Smith,Phillip E. Stano,Steuart H. Thomsen,Gail L. Westover,Allison E. Wielobob,Mary Jane Wilson-Bilik, January 20, 2017
The Department of Labor (DOL) has released two additional sets of FAQs providing guidance related to its final rule expanding the definition of fiduciary “investment advice” (the Final Rule) for purposes of the Employee Retirement Income Security Act of 1974, as amended (ERISA).

Plaintiffs Have Come Up Empty on Class Action Slack Fill Litigation But Are Expected to Pick It Up in 2017
Brittany M. Cambre,Sarah Q. Chaudhry,Melissa A. Conrad-Alam,Michael R. Nelson,Meghana D. Shah,Ronald W. Zdrojeski, January 19, 2017
Complaints regarding the amount of product contained in a particular package appear to be the new battlefront on which plaintiffs are waging war on a wide range of consumer product manufacturers. The lawsuits are spurred by a set of regulations, issued by the U.S. Food and Drug Administration (FDA)...

When are Premiums Paid to a Captive Insurance Company Deductible for Federal Income Tax Purposes?
Saren Goldner,M. Kristan Rizzolo,P. Bruce Wright, January 19, 2017
In their article for Captive.com, Sutherland attorneys P. Bruce Wright, M. Kristan Rizzolo and Saren Goldner review the basic requirements that must be met for insurance premiums paid to a captive insurer to be tax deductible: risk transfer, risk distribution and insurance risk.

Federal Insurance Office Report Highlights Consumer Protection Issues Raised by Big Data, Cyber Risks
Mark D. Herlach,John S. Pruitt,Stephen E. Roth,Cynthia R. Shoss,Phillip E. Stano, January 02, 2017
On November 21, 2016, the Federal Insurance Office (FIO) issued its first ever annual Report on the Protection of Consumers and Access to Insurance (Report). The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank) authorizes FIO to monitor all aspects of the insurance...

NY DFS Publishes Revised Proposed Cybersecurity Rules for Financial Services Companies
Mark D. Herlach,John S. Pruitt,Stephen E. Roth,Cynthia R. Shoss,Phillip E. Stano, January 02, 2017
On December 28, 2016, the New York Department of Financial Services (the DFS) published a revised proposed cybersecurity regulation (the Revised Regulation) for further public comment. First published in September 2016, the Revised Regulation is a culmination of three years of work by the DFS to...

NAIC Report: 2016 Fall National Meeting
B. Scott Burton,Ling Ling,Michael R. Nelson,John S. Pruitt,Stephen E. Roth, December 30, 2016
The National Association of Insurance Commissioners (NAIC) held its 2016 Fall National Meeting December 10-13. Despite the glitzy setting at the Fontainebleau Hotel in Miami Beach, there were no splashy new developments—save the announcement of the appointment of Michael Consedine as NAIC...

Enhanced Cyber Risk Management Standards Announced in Joint Rulemaking Initiative by Treasury, Federal Reserve, and FDIC
Mark D. Herlach,John S. Pruitt,Stephen E. Roth,Cynthia R. Shoss,Phillip E. Stano, December 29, 2016
On October 19, 2016, the three major federal banking regulators announced a joint advance notice of proposed rulemaking (ANPR) for enhanced cyber risk management standards (Enhanced Standards) for large and interconnected federally regulated financial institutions and their third-party service...

IRS Provides Guidance on Reasonable Mortality Charges for Life Insurance Contracts Based on 2017 CSO Tables
Dennis L. Allen,Thomas A. Gick,Michael R. Miles,Mary E. Monahan,William R. Pauls, October 27, 2016
On October 19, the Internal Revenue Service (IRS) issued an advance version of Notice 2016-63, addressing the “reasonable mortality charge” requirement under IRC §§ 7702 and 7702A for life insurance contracts based on the 2017 Commissioners’ Standard Ordinary (CSO)...

NY DFS Announces Proposal for Cybersecurity Rules for Financial Services Companies
Mark D. Herlach,John S. Pruitt,Stephen E. Roth,Cynthia R. Shoss,Phillip E. Stano, September 22, 2016
On September 13, 2016, New York Governor Andrew Cuomo announced a proposal by the New York Department of Financial Services (the DFS) of a rule that establishes cybersecurity requirements for financial services companies regulated by the DFS (the NY Regulation). The NY Regulation is the culmination...

NAIC Report: 2016 Summer National Meeting
B. Scott Burton,Ling Ling,Michael R. Nelson,John S. Pruitt,Cynthia R. Shoss, September 07, 2016
The National Association of Insurance Commissioners (NAIC) held its 2016 Summer National Meeting from August 26 through August 29 in San Diego, California.

NAIC Task Force Releases Revised Draft Insurance Data Security Model Law
Mark D. Herlach,John S. Pruitt,Stephen E. Roth,Cynthia R. Shoss,Mary Jane Wilson-Bilik, August 30, 2016
On August 17, the National Association of Insurance Commissioners (the NAIC) Cybersecurity (EX) Task Force (the Task Force) released for comment a revised draft Insurance Data Security Model Law (the Model Law). This Model Law purports to “establish exclusive standards . . . for data security...

Day 2: Changing Lanes
Michael R. Nelson, August 15, 2016
2:47, P.M. Richland, Utah. We are about 1/5 the way across the country. It’s a big place! Automated features do decrease driver fatigue but using new technology and of course driving in new territories add to the effort.

Day 2: Leaving Las Vegas
Michael R. Nelson, August 15, 2016
Just outside of Vegas. We will just stop to refill battery. Nevada allows Level 3 driving while on a highway. Oddly on this section of Route 15, the lanes are not that clearly marked. Charlie seems to be struggling a little bit on staying in the center of the lines it is having a hard time seeing....

Day 2: Pit Stop
Michael R. Nelson, August 15, 2016
11:07 A.M. What is a little bit of an unexpected pleasure is the rest stops to charge the battery. The Tesla charge last about 300 miles but the Tesla real charging stations are about 100 miles apart so you have to stop more frequently than you would for a gas station. This charging station is in...

Day 2: Travels with Charlie
Michael R. Nelson, August 15, 2016
Yesterday we started the journey by heading out of Barstow, California at 5:30 pm driving northeast on Route 15. It was not ideal. Traffic on a Friday night in a L.A. rush hour on “the 5” was a bear.

Day 3: There’s an App for That
Michael R. Nelson, August 15, 2016
Starting off just outside of Denver. 42 degrees. I am charging Charlie and Drew is getting a few last winks in.

NAIC Task Force Continues Work on Insurance Data Security Model Law
John S. Pruitt,Cynthia R. Shoss,Mary Jane Wilson-Bilik,John Allen Zumpetta, June 07, 2016
On May 24 and 25, the National Association of Insurance Commissioners (the NAIC) Cybersecurity (EX) Task Force (the Task Force) hosted a meeting in which state insurance commissioners and interested parties were invited to provide comments to and voice concerns about the current draft of the...

The Federal Reserve Board’s ANPR with Respect to Capital Requirements for Supervised Institutions Significantly Engaged in Insurance Activities
Maureen Emmert Adolf,Brian Barrett,John S. Pruitt,Cynthia R. Shoss, June 07, 2016
On June 3, 2016, the Board of Governors of the Federal Reserve System (FRB), approved an advance notice of proposed rulemaking (ANPR)1 regarding two potential regulatory capital frameworks for institutions under the FRB’s supervision that are significantly engaged in insurance activities....

The Federal Reserve Board Outlines Approach For Capital Rules For Federally Supervised Insurance Groups
Maureen Emmert Adolf,Brian Barrett,John S. Pruitt,Cynthia R. Shoss, May 27, 2016
At the NAIC’s tenth International Insurance Forum, Daniel K. Tarullo, a member of the Board of Governors of the Federal Reserve System (FRB), outlined the FRB’s plans for

NAIC Report: 2016 Spring National Meeting
Frederick R. Bellamy,Ling Ling,John S. Pruitt,Cynthia R. Shoss,Mary Jane Wilson-Bilik, May 25, 2016
The National Association of Insurance Commissioners (NAIC) held its 2016 Spring National Meeting from April 1 through April 6 in New Orleans, Louisiana. As host, Louisiana provided beautiful weather and bountiful great food. The Spring National Meeting was also highlighted by spirited discussions...

Only the Lonely: “Lonely” Life Insurance Companies Confront New Issues Under Proposed Debt-Equity Regulations
Dennis L. Allen,Thomas A. Gick,Michael R. Miles,Mary E. Monahan,William R. Pauls, April 29, 2016
The rules of IRC § 1504 and Treas. Reg. § 1.1502-47 provide the general parameters for determining whether a domestic life insurance company (within the meaning of IRC § 816(a)) may join in filing a consolidated U.S. federal income tax return with one or more domestic nonlife...