Within the EU there is a possibility to transfer portfolios of risks between companies authorised to carry on insurance business. Such a transfer will be recognised throughout the EU without the need for any further filings or procedures, and is relatively simple to perform. It has the effect of legally changing the identity of the risk carrier in the same way as a novation, but without requiring the consent of each individual policyholder/creditor.

The legal effect following such a portfolio transfer will differ between jurisdictions outside the EU, and may depend on conflict of law rules and similar statutes. In the US, it is not yet clear if Chapter 15 of the Bankruptcy Code will offer protection for the transferor.

For the transferor, this process will deliver absolute finality in respect of the transferred portfolio. Hampden has successfully acted both as a transferor and a transferee in such transactions, and is actively looking to purchase further portfolios of business.