Private Equity Backed Insurance Investments

Unlike the USA and some countries in the EU, the insurance industry in the Netherlands has not yet seen large scale private equity backed investment activity. An important reason often heard for the reluctance of private equity investors to step into the insurance market arena relates to alleged challenges caused by the regulatory environment applicable to insurance companies, which is believed to be more complex that the comparable industries such as banking. This article sets out some of the main features of investments in insurance companies in the Netherlands, possible solutions for the challenging regulatory framework for the private equity industry, as well as recent trends that could provide windows of opportunity.