The insurance industry continues to face major challenges.
The insurance industry has faced major challenges through the financial crisis, with declining asset values and increased credit risk putting pressure on capital buffers. For insurers in Europe, the implementation measures for Solvency II remain uncertain and the eurozone crisis adds further issues.
Throughout these developments our insurance team has advised insurance companies, investment banks and other financial institutions on various actions to manage assets and liabilities and mitigate larger risks. We have been active in advising on M&A, distribution arrangements, bulk purchase annuity work and longevity transactions.
We continue to lead the market through innovation in relation to structures which achieve the right effect both under current regulations and (the current shape of) Solvency II. We have advised on capital raising, including contingent loan transactions, rights issues and on hybrid capital and senior bond issues.
With asset values low and regulatory uncertainty high globally, we expect to see opportunities for M&A, whether as a result of insurance companies divesting their non-core assets or others, such as banks, selling their insurance arms. Raising or optimising regulatory capital remains a key issue and we expect to see liquidity (starting with the banks) potentially driving M&A.
The firm’s insurance lawyers are renowned for devising innovative restructuring and financing techniques for the sector to help our clients achieve their business goals. Our clients rely on Linklaters to guide them through the changes that continue to affect the insurance industry, so they can overcome the issues they face and take advantage of the opportunities. They gain the benefit of expert advice from global specialists in corporate insurance, M&A, litigation, restructuring and insolvency, capital markets, tax, employment and regulatory matters.
Contact us
To discuss legal issues with Linklaters’ global insurance team, please contact sector leaders Victoria Sander, Wolfgang Krauel, Teresa Ma, Scott Sonnenblick, Duncan Barber, or Dan Schuster-Woldan.
Recent insurance transactions include advising:
- AXA on the acquisition of HSBC's general insurance business in Hong Kong, Singapore and Mexico.
- on the US$20bn offering and listing of AIA Group - the, largest insurance sector IPO ever, the largest Hong Kong offering ever, the largest listing on a single exchange ever and the third largest IPO in the world ever (Deal of the Year, Best IPO – FinanceAsia Awards 2010)
- New York Life Insurance Company on the sale of its insurance businesses in China, Hong Kong, South Korea and Thailand
- the banks on Aviva’s £5bn Euro Note Programme, the first “Solvency II” MTN Programme by a UK insurer
- Rothesay Life (Cayman) Limited on the £260m acquisition of Paternoster
- Credit Suisse on the Ping An Insurance RMB 29.1bn acquisition of Shenzhen Development Bank
- Meiji Yasuda Life Insurance Company on a strategic alliance with Talanx AG, Germany
- on acquisitions of interests in New China Life Insurance Co Ltd
- Allianz on the issue of €500m convertible Notes with scheduled maturity in 2041 and with contingent mandatory conversion (the first "coco" issued by a European insurer)
- the trustees to the Rolls-Royce Pension Fund on a £3bn longevity swap entered into with Deutsche Bank
