Protecting Viable Private Equity Investment In The Insurance Sector


In This Issue:

- M&A Activity in the Insurance Industry

- Developments in the M&A Regulatory Environment

- NAIC Private Equity Issues (E) Working Group

- The Working Group’s Proposals Subject to Comment

..Change in Control Form A Considerations

..Annual Examination of Insurer and Affiliates

..Non-Affiliate Examinations

- For More Information

- Excerpt from M&A Activity in the Insurance Industry:

Activity in insurance industry M&A was robust in 2011 and 2012. PE firms alone made over 100 acquisitions in this sector in those years. While insurance M&A activity in 2013 did not continue that active pace, market followers project a significant increase in insurance sector M&A in 2014. This appears to be due to a perceived increasing demand in insurance sector investments by PE firms, particularly in insurance broker acquisitions, but also in life insurance and property & casualty insurance companies. A motivating factor for PE investment in insurance brokers is the favorable impact the brokers’ compensation structure delivers to its cash flows and balance sheet risk. PE firms are also motivated by the opportunity to apply their “value-added” experience in financial management and risk assessment, recruiting talent, restructuring/streamlining and – particularly - asset management expertise to an attractive insurance sector target, as a component of the firms’ investment strategies. In many cases, PE investment provides much needed capital for the insurance target, either to meet regulatory requirements or for the pursuit of a growth strategy.

Please see full Publication below for more information.

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Topics:  Casualty Insurance, Insurance Brokers, Insurers, NAIC, Private Equity, Property Insurance

Published In: Finance & Banking Updates, Insurance Updates, Mergers & Acquisitions Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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