{"id":3813,"date":"2026-02-13T06:27:09","date_gmt":"2026-02-13T06:27:09","guid":{"rendered":"https:\/\/www.insuracarelife.com\/blog\/acquisitions-of-reinsurance-undertakings-by-private-equity-funds-supervisory-statement-of-eiopa-mayer-brown\/"},"modified":"2026-02-13T06:27:09","modified_gmt":"2026-02-13T06:27:09","slug":"acquisitions-of-reinsurance-undertakings-by-private-equity-funds-supervisory-statement-of-eiopa-mayer-brown","status":"publish","type":"post","link":"https:\/\/www.insuracarelife.com\/blog\/acquisitions-of-reinsurance-undertakings-by-private-equity-funds-supervisory-statement-of-eiopa-mayer-brown\/","title":{"rendered":"Acquisitions of (Re)insurance Undertakings by Private Equity Funds \u2013 Supervisory Statement of EIOPA | Mayer Brown"},"content":{"rendered":"<div id=\"html-view-content\">\n<p>[co-author: Francesco Faccendini]<\/p>\n<p><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">On 27 January 2026, the European Insurance and Occupational Pensions Authority (EIOPA) provided a Consultation Paper on a Supervisory Statement addressed to national supervisory authorities with the aim of ensuring <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">high-quality, convergent, and risk-based supervision of (re)insurance undertakings<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> in the EU by raising awareness of current issues.<\/span><\/span><\/p>\n<p style=\"margin-top:16px\"><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">The issue that currently concerns EIOPA the most is the <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">growing appetite of private equity funds<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> for acquisitions of (re)insurance undertakings.<\/span><\/span><\/p>\n<p style=\"margin-top:16px\"><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">EIOPA acknowledges the economic benefits of these acquisitions (such as diversified investment strategies, operational efficiencies, higher yields, and easier access to capital), but draws the attention of national supervisory authorities to the associated risks:<\/span><\/span><\/p>\n<ul>\n<li aria-level=\"1\" style=\"list-style-type:disc\"><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">The <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">complex ownership structures<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> used by PE funds when acquiring (re)insurance undertakings (intermediary holdings, composition, and location of entities in third countries) can pose challenges for national supervisory authorities, especially during the acquisition process subject to a limited time frame of 60 working days under the change of control procedure;<\/span><\/span><\/li>\n<li aria-level=\"1\" style=\"list-style-type:disc\"><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">PE funds may have <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">short-term investment horizons<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">, with exit strategies potentially misaligned with the (re)insurance undertaking&#8217;s long-term commitment to policyholders;<\/span><\/span><\/li>\n<li aria-level=\"1\" style=\"list-style-type:disc\"><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">Once a (re)insurance undertaking has been acquired, PE funds may <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">change its asset allocation<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> towards private credit and illiquid assets. These forms of investment may \u2013 depending on the precise asset &#8211; be viewed as <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">riskier<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">, and may also be used to support other businesses owned by or related to the same PE fund, which may trigger a <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">conflict of interest<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">; and<\/span><\/span><\/li>\n<li aria-level=\"1\" style=\"list-style-type:disc\"><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">PE funds may use collateralised debt secured by the (re)insurance undertaking &#8216;s operations and assets to finance acquisitions, resulting in <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">high leverage<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> and significantly <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">increased prudential risks<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">.<\/span><\/span><\/li>\n<\/ul>\n<p style=\"margin-top:16px\"><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">In view of these risks, EIOPA proposes a <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">number of measures<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> that should be implemented by national supervisory authorities.<\/span><\/span><\/p>\n<p style=\"margin-top:16px\"><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">According to EIOPA, national supervisory authorities should:<\/span><\/span><\/p>\n<ul>\n<li aria-level=\"1\" style=\"list-style-type:disc\"><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">Request<\/span><\/span>\n<ul>\n<li aria-level=\"2\" style=\"list-style-type:disc\"><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">Details<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> on agreements regulating the PE funds&#8217; relationships;<\/span><\/span><\/li>\n<li aria-level=\"2\" style=\"list-style-type:disc\"><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">Information<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> on entities influencing PE decisions making;<\/span><\/span><\/li>\n<li aria-level=\"2\" style=\"list-style-type:disc\"><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">Justification<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> for each level of the ownership chain;<\/span><\/span><\/li>\n<li aria-level=\"2\" style=\"list-style-type:disc\"><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">Information<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> about third-party interest that could impact management decisions related to the acquired (re)insurance undertaking;<\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\" style=\"list-style-type:disc\"><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">Require<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> proposed PE funds to provide a complete list of planned changes post-authorisation, including at least a <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">three-year business plan<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">;<\/span><\/span><\/li>\n<li aria-level=\"1\" style=\"list-style-type:disc\"><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">Evaluate<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> how the <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">investment horizon<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> aligns with insurer obligations to policyholders;<\/span><\/span><\/li>\n<li aria-level=\"1\" style=\"list-style-type:disc\"><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">Monitor intragroup transactions<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">, ensuring application of the arm&#8217;s length principle, fair value of commissions, and adequate intragroup transaction policy;<\/span><\/span><\/li>\n<li aria-level=\"1\" style=\"list-style-type:disc\"><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">Ensure<\/span><\/span>\n<ul>\n<li aria-level=\"2\" style=\"list-style-type:disc\"><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">that (re)insurance undertakings <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">maintain an effective system of governance<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> providing sound and prudent management; and<\/span><\/span><\/li>\n<li aria-level=\"2\" style=\"list-style-type:disc\"><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">that <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">decisions are made in policyholders&#8217; and beneficiaries&#8217; best interests<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">; and<\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\" style=\"list-style-type:disc\"><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">Scrutinise<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> the entire <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">financing structure<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> of the respective acquisition, ensuring the (re)insurance undertaking&#8217;s ability to generate value.<\/span><\/span><\/li>\n<\/ul>\n<p style=\"margin-top:16px\"><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">In view of the timeline applicable to formal notification assessments for qualifying holdings or portfolio transfers (change of control procedures, see our <\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"><span style=\"-webkit-text-decoration-skip:none\"><span style=\"text-decoration-skip-ink:none\">Insurance M&amp;A &#8211; A quick Guide to acquiring a German Insurance Company<\/span><\/span><\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> and <\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"><span style=\"-webkit-text-decoration-skip:none\"><span style=\"text-decoration-skip-ink:none\">FAQs &#8211; UK regulatory approvals for insurance M&amp;A<\/span><\/span><\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">), PE funds <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">should be encouraged to enter early dialogue<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> with national supervisory authorities before submitting formal notification, particularly where significant changes to the business model are planned.<\/span><\/span><\/p>\n<p style=\"margin-top:16px\"><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">For context, the topic of private equity investments in the UK insurance market was <\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"><span style=\"-webkit-text-decoration-skip:none\"><span style=\"text-decoration-skip-ink:none\">addressed by the Prudential Regulation Authority<\/span><\/span><\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> (PRA) in 2024. Although the PRA notes that the characteristics of a particular transaction may justify differences in the depth and methods of its assessment, it also stated that private equity firms (as well as hedge funds and sovereign wealth funds) intending to acquire 20% or more of a PRA-regulated firm can expect to provide additional information beyond its standard requirements. These may include:<\/span><\/span><\/p>\n<ul>\n<li aria-level=\"1\" style=\"list-style-type:disc\"><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">Information on the firm\u2019s track record in acquiring financial institutions and how those acquisitions have performed;<\/span><\/span><\/li>\n<li aria-level=\"1\" style=\"list-style-type:disc\"><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">Details of the firm\u2019s investment policy and any investment restrictions, including investment monitoring, investment rationale, and exit strategy;<\/span><\/span><\/li>\n<li aria-level=\"1\" style=\"list-style-type:disc\"><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">The framework for the firm\u2019s investment decisions, including information on the individuals responsible for decision\u2011making; and<\/span><\/span><\/li>\n<li aria-level=\"1\" style=\"list-style-type:disc\"><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">The AML procedures and framework of each proposed controller.<\/span><\/span><\/li>\n<\/ul>\n<h4 style=\"margin-top:15px\"><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">NEXT STEPS<\/span><\/span><\/h4>\n<p><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">The Consultation Paper on a Supervisory Statement is intended merely as a<\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> discussion starter<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">. EIOPA welcomes comments on the Consultation Paper (including any alternatives EIOPA should consider) until 30 April 2026. It remains to be seen what concrete actions will follow from national supervisory authorities, undertakings, and the PE industry, and what concrete legal measures the Consultation Paper will lead to. However, it also shows that<\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> EIOPA <\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">has <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">PE funds <\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">and their<\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\"> activities <\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">related to (re)insurance undertakings <\/span><\/span><span style=\"font-weight:700; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">on its radar<\/span><\/span><span style=\"font-weight:400; font-variant:normal; white-space:pre-wrap\"><span style=\"font-style:normal\">.<\/span><\/span><\/p>\n<p>[View source.]<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>[co-author: Francesco Faccendini] On 27 January 2026, the European Insurance and Occupational Pensions Authority (EIOPA) provided a Consultation Paper on a Supervisory Statement addressed to national supervisory authorities with the aim of ensuring high-quality, convergent, and risk-based supervision of (re)insurance undertakings in the EU by raising awareness of current issues. The issue that currently concerns [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3814,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1788,2250,2490,1214,1609,2249,418,611,2489,2488,2487],"class_list":["post-3813","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-acquisitions","tag-brown","tag-eiopa","tag-equity","tag-funds","tag-mayer","tag-private","tag-reinsurance","tag-statement","tag-supervisory","tag-undertakings"],"_links":{"self":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts\/3813","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/comments?post=3813"}],"version-history":[{"count":0,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/posts\/3813\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/media\/3814"}],"wp:attachment":[{"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/media?parent=3813"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/categories?post=3813"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.insuracarelife.com\/blog\/wp-json\/wp\/v2\/tags?post=3813"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}