Increased Supervisory Focus On PE-owned Insurance Undertakings

EIOPA has adopted a final Supervisory Statement concerning PE-related insurance undertakings. The Supervisory Statement places greater emphasis on how PE ownership affects an insurance undertaking’s business model, financing, governance and long-term obligations. For PE firms, this may result in more extensive scrutiny already at the acquisition stage, with issues relating to investment horizon, exit and financing structure remaining relevant throughout the holding period. PE-owned insurance undertakings can also expect more extensive ongoing supervision. Below, we summarise EIOPA’s key expectations and what we believe investors and insurance undertakings should consider.

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