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M&A and capital structuring


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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
More about this service

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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