“Recent Developments at the NAIC Private Equity Issues (E) Working Group”
The NAIC Private Equity Issues (E) Working Group (“Working Group”) held a conference call on Thursday, October 23, 2014 and an open meeting on Saturday, August 16, 2014.
The Private Equity Issues (E) Working Group’s 2014 charge is to “consider development of procedures that regulators can use when considering ways to mitigate or monitor risks associated with private equity/hedge fund ownership or control of insurance company assets, including the development of best practices and consideration of possible changes in NAIC policy positions as deemed appropriate.” The Working Group has focused on creating procedures and guidelines to help regulators evaluate the risks of private equity and hedge fund ownership of insurance companies.
During the conference call on October 23, 2014, the Working Group reviewed specific comments and revisions made by Working Group members, the NAIC staff and commentators to the draft of Section E of the Financial Analysis Handbook (“Handbook”), as of October 23, 2014 (“Draft”). The Draft focuses on standards that regulators should consider in evaluating proposed transactions subject to a Form A (an application statement regarding the acquisition of control of or merger with a domestic insurer).
This Stroock Special Bulletin provides an update regarding the Working Group’s progress on the Draft and a preview of the NAIC’s Fall National Meeting.