Thoughts on Financing and Capital Solutions for Insurance Companies
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- Against the prevailing negative market backdrop, insurance companies may require additional financing.
- Ultimately, the most appropriate and optimal means of raising necessary additional capital depends on a range of factors, including the then-current composition of the company’s capital structure, the intended use of proceeds and regulatory and rating agency considerations.
- The following Debevoise In-Depth summarizes a number of the common forms of debt and equity financing utilized by insurance companies, including surplus notes, senior debt securities, subordinated debt securities, PCAPs, funding agreement-backed notes, depositary shares and PIPEs transactions.