Regulated insurers typically rely on customer premium payments and investment returns to fund their day-to-day operations. But from time to time, regulated insurers seek to raise money through other available market sources, for example, to fund an acquisition or make a strategic investment. Likewise, regulated insurers themselves have increasingly been subject to buyouts by financial sponsors who typically look to leverage their investment with debt financing.
In this article, Baker McKenzie lawyers consider some of the challenges faced by market participants when a regulated insurer seeks to tap the leveraged debt markets.
* This article was first published in the International Financial Law Review.