Insurance Regulators Propose New Guidelines for Reviewing Acquisitions

On July 21, 2016, a working group of the nation's main insurance regulatory standard-setting body proposed factors to guide regulators when reviewing insurance company mergers and acquisitions. The proposed guidance offers clues as to how insurance regulators approach acquisitions of insurers for purposes of granting statutory approvals and is "required reading" for anyone considering a purchase of a U.S. insurance company.
 
In particular, the guidance underscores points of regulatory emphasis and scrutiny that may not be obvious based on a mere reading of the applicable statutes and regulations, including details relating to corporate ownership, transaction structure, source of funds and corporate affiliations.