Hugh T. McCormick advises domestic and international insurance and reinsurance companies, as well as other participants in the insurance industry, such as investment banks, on regulatory, corporate and tax matters arising in connection with mergers and acquisitions, reinsurance transactions, restructurings and financing transactions. He was a principal member of AXA’s legal team in the demutualization and acquisition of interests in The Equitable Life Insurance Society of the United States, and was similarly involved in later demutualization transactions. He has represented insurers and reinsurers in numerous transactions, including surplus enhancing transactions, transfers of large books of insurance business, and reinsurance-based healthcare joint ventures. He was involved in the first life insurance XXX reserve financing transaction in South Carolina in 2003, and in subsequent transactions in Delaware, Vermont and Ireland. His experience also includes insurance insolvency matters, including the rehabilitation of the Baldwin-United insurance subsidiaries and the Executive Life Insurance Company insolvency, and he was involved in the acquisition of an insolvent life insurer in Japan. He is a co-author of an actuarial textbook, Insurance Industry Mergers & Acquisitions, and has published articles on insurance securitization.
Mr. McCormick also represents insurers, intermediaries and buyers in the corporate-owned life insurance (COLI), bank-owned life insurance (BOLI) markets in the U.S., and the private placement variable life insurance and annuity markets both domestic and foreign markets, and advises fund managers on tax issues for funds offered as investment options under variable insurance products He also advises insurance and reinsurance companies in the offshore markets on U.S. tax and regulatory compliance issues.
For many years Mr. McCormick was primary outside counsel to Scottish Life and Annuity Holdings Ltd, later Scottish Re Group Limited, a global life reinsurance and wealth management company. In addition to his legal representation of Scottish Re, in 2005 he became executive vice president for corporate development (and member of the executive committee). While in that position, he was involved in M&A transactions and reinsurance operations in the U.S., Europe, Singapore, Tokyo and China. He provided assistance to the Irish Financial Regulator in developing regulations governing the use of special purpose reinsurance vehicles for securitization purposes under the EU Reinsurance Directive and to the Monetary Authority or Singapore with respect to similar regulations, and was involved in IAIS (International Association of Insurance Supervisors) projects on risk transfer and securitization.
From 1977 to 1981 Mr. McCormick was an attorney-advisor with the Office of Chief Counsel, Internal Revenue Service. He has an LL.M. in Taxation from Georgetown University (1980), a J.D. from Rutgers University School of Law, Newark (1977), and a B.A. from the University of Michigan (1968).
- Conducted life insurance product due diligence and advised on related SPA matters in connection with Tokyo-based Dai-ichi Life Insurance Company, Limited's $5.7 billion acquisition of Protective Life Corporation (2015).
- Scottish Re Group Limited in the sale of its Wealth Management business to Northstar Financial Services (2008).
- Scottish Re in its acquisition of ING Re’s individual life reinsurance business (2004).
- Scottish Re in the acquisition of Harbourton Reassurance Inc. (U.S.) (1999), ERC Reinsurance Corporation (U.S.) (2003), and World Wide Holdings Limited (U.K.) (2001).
- AXA Equitable Life Insurance Company in its sale of its individual disability business to Centre Life Insurance Company (2000).
- Guardian Life Insurance Company of America in structuring a reinsurance-based managed care and insurance joint venture with Physician’s Health Services (1995).
- U.S. Healthcare (now Aetna) in the acquisition of Adirondack Life Insurance Company (now Aetna Health Insurance Company of New York) (1990), and service on the Board of Directors of the New York company.
Areas of Practice
- Insurance and Reinsurance
- Insurance Tax (Company and Products)
- Insurance Regulatory Matters
- Corporate Law
- Mergers and Acquisitions
- New York
- Society of Actuaries
- Reinsurance Section
- Tax Section
- AIDA Reinsurance and Insurance Arbitration Society (ARIAS–U.S.)
- North East Tax Study (NETS) Group
- Insurance Tax Conference, Board of Directors, 1994-2004
- President and Chairman of the Board, 2002-2004
- Co-author, "Highlights from the NAIC Spring Annual Meeting on PBR and Captive Insurance Companies," Duane Morris Alert, April 16, 2015
- Co-author, "Latest Developments in Regulation of XXX/AXXX Captives," Duane Morris Alert, December 8, 2014
- Co-author, "NAIC Moving Forward on Regulation of XXX/AXXX Financing Transactions," Duane Morris Alert, August 29, 2014
- Co-author, "Report to NAIC on Captives: The Controversy About Principle-Based Reserves and Captives Continues," Duane Morris Alert, March 27, 2014
- Quoted in "Validus Case Opens Door For Retrocession Tax Refunds," Law360, February 18, 2014
- Co-author, "The Ongoing Debates Over Insurance Regulatory Reforms," Law360, October 21, 2013
- Co-author, "First Ever: Global Capital Standards for Insurers," Duane Morris Alert, October 11, 2013
- Co-author, "Insurance Regulatory Update - Holding Company Supervision, Designation of Prudential Financial as Being 'Too Big to Fail,' Principle-Based Reserving and Captives," Duane Morris Alert, September 23, 2013
- Co-author, "Financial Stability Board Designates Nine Global Insurance Groups as 'Global Systemically Important Insurers,'" Duane Morris Alert, August 5, 2013; republished by Law360, August 20, 2013
- Co-author, "Recent Developments in New York's Taxation of Unauthorized Life Insurers," Duane Morris Alert, May 3, 2013; republished by Law360, May 22, 2013
- Co-author, "Principle-Based Reserves & SPVs: Regulatory Developments," Duane Morris Alert, March 21, 2013
- Co-author, "Controversy Over Principles-Based Reserves & SPVs - Report from the NAIC Fall Meeting," Duane Morris Alert, December 7, 2012
- Co-author, Insurance Industry Mergers and Acquisitions, Society of Actuaries, 2005
- Author, "U.S. Regulatory Issues," International Life Insurance, Chancellor Publications, UK, 2002
- Co-author, "Early to Rise," Best's Review, August 2009 (discussing Singapore special purpose reinsurance vehicle regulations)
- "Paving the Way for Securitization," Asia Insurance Review, September 2006
- Columnist on Life Insurance Products, Journal of Taxation of Investments, 1987-1999
Selected Speaking Engagements
- American Conference Institute's 10th National Forum on Insurance Regulation, New York, 2015
- European Insurance Forum, Dublin, 2013
- ReFocus (Life Reinsurance Conference), Las Vegas 2008-2012 (speaker and moderator)
- Asian Life Insurance Summit, Hanoi, 2008
- Natural Catastrophe Risk Insurance Mechanisms for Asia and the Pacific, Tokyo, 2008 (moderator)
- Pacific Insurance Conference, Kuala Lumpur, 2007
- IAIS Annual Meeting, Beijing, China, 2006
- Global Life Insurance Securitization Conference, Asia, Singapore, Tokyo and Hong Kong, 2006
- European Insurance Forum, Dublin, 2006
- ABS West, 2006
- International Symposium on Corporate Governance for Insurance Companies, Beijing, 2005
- Insurance Tax Conference and Federal Bar Association Insurance Tax Seminar, 1987-2004
- Society of Actuaries Meetings, 1993, 2000, 2002
- American Conference Institute, Legal and Strategic Forum on Life Reinsurance, 2007-2010