Insurance M&A: Bermuda's Change Of Control Requirements

Insurance M&A: Bermuda's change of control requirements

This article, the first in a multi-part series on M&A in insurance, considers the change of control regime under the Bermuda Insurance Act 1978 (the "Insurance Act") as it applies to shareholder controllers of Bermuda insurers.

In the complex landscape of mergers and acquisitions ("M&A"), regulatory challenges play a critical role in the success of transactions. For firms considering undertaking a M&A transaction involving a Bermuda (re)insurance company, the need to obtain the prior approval of the Bermuda Monetary Authority (the "BMA") is a hurdle that, at best, can delay completion and, at worst, can derail a transaction completely if consent to the change of ownership is withheld. It is therefore of critical importance that firms understand the Bermuda insurance regulatory landscape and identify early on whether an acquisition affects a Bermuda (re)insurer.