With M&A activity for life insurers or blocks of in-force business poised for a possible spike, acquirers of life businesses should consider factors that are peculiar to, or disproportionately affect, the life and annuity sector relative to other types of insurers such as property-casualty (p&c).
Such features specific to life companies include the following, which require a dedicated focus on due diligence and may also require appropriate tailoring of representations and warranties or other provisions in the purchase contract:
It can be expected that compliance with these rules for new business will be a key focus of New York and other state insurance regulators going forward. Acquirers will want to make sure they understand the reach of any such new requirements and the resulting compliance implications for their target.
An acquirer should consider all these developments carefully in the context of a particular insurance target, not only from a valuation standpoint but also for purposes of representations and warranties in the purchase agreement such as those relating to actuarial reserving, reinsurance, investments, capital adequacy and regulatory and other compliance. If you want to know more about the pa health insurance companies then please send your queries by dropping a comment below.
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14/10/2019 11:45:59 pm
The state measures being adopted apply more squarely to life insurance products in general.
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