January 22, 2014

The complexity of the insurance sector no longer causes many private equity firms to shy away from insurance industry entities as acquisition targets in carrying out a private equity firm's investment strategies. However, PE firms getting in on the action should be aware of present and evolving regulatory requirements imposed on insurance company investments.

The National Association of Insurance Commissioners' "Private Equity Issues (E) Working Group" has recently proposed for comment enhanced regulatory scrutiny of private equity investment in the insurance sector, of which PE firms considering merger and acquisition activity in this market should be aware. Insurers interested in the opportunity for capital investment by PE firms should also be aware of the Working Group's proposals. The comment period expires January 30, 2014.

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