Insurance companies are increasing their mergers and acquisitions (M&A)
and disposals activity in order to reassess and optimise their capital, as well
as aligning their businesses to their core strengths. PwC provides complete
insurance M&A assistance, built on a thorough understanding of claims
liabilities and insurance risks. Our experienced team facilitates the whole
M&A lifecycle in order to provide you with the rapid progress required at
most stages of insurance M&A transactions.
Against the backdrop of significant regulatory and financial reporting
change, companies are also considering how best to structure their capital. Our
practice has assisted companies from feasibility studies through to the
practical implementation of portfolio transfers, demutualisation schemes,
securitisation and other forms of capital raising. We have also developed a
number of techniques to enable companies to restructure their liability
portfolios, including scheme of arrangement technology.
How we can support
you
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Potential issues
- You want to expand, restructure or refocus your business, and are looking
for advice to identify and prioritise appropriate targets, joint ventures or
outsourcing partners
- You are looking to understand and manage the risk involved, including
setting the criteria for success versus risk, and putting a value on the
liabilities
- You want to determine the price and value of a potential acquisition, or
set a price on your company that reflects its true worth and maximises your
potential sale price
- You want due diligence advice or focused attention on any key risks or
areas of likely concern at the early stage of the deal process
- You need assistance with the regulatory issues that arise from a transfer
of business, restructuring, acquisition or disposal
- You want to understand the impact of a transaction or restructuring under
the various regulatory and financial reporting measures currently in use, or
soon to be introduced.
How we can support you
- Identification of attractive portfolios with strategic fit for your
company
- Increased shareholder value through sale of whole or partial portfolios, in
line with strategic plans that we develop in partnership with your
organisation
- Benefit from our specialists’ assessments of the transfer, sale or purchase
of books of business, as well as complete companies
- Thorough appraisal and reporting of potential transactions and
identification of risks or areas of concern
- Our specialists have knowledge of specific companies, ensuring efficient
and cost effective transactions
- Sound, independent planning and advice for all stages of the M&A
lifecycle, enabling you to maximise the value of your transactions.
PwC can offer the following M&A and capital structuring services
- Provide deal identification services
- Perform due diligence exercises
- Perform actuarial appraisal and valuation – putting a value on liabilities
and explaining the variables that influence that value, including issuing
Independent Expert reports to aid in transfers of business
- Advise on accounting implications under US GAAP, UK GAAP or the new
International Financial Reporting Standards (IFRS). This is particularly
important where finite risk products are involved
- Negotiate and manage the communications process with the Financial Services
Authority for approval and authorisation, in order to avoid future regulatory
issues
- Provide value realisation services for vendors, where maximising the sale
price is key.
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