Supervisory Statement on the authorisation and ongoing supervision of (re)insurance undertakings related to private equity

The Supervisory Statement on the authorization and ongoing supervision of private equity-related (re)insurance undertakings is addressed to national supervisors and aims to promote consistent, high-quality and risk-based supervision of private equity-backed undertakings across the Union.

Private equity (PE) firms have over the past decade shown a growing interest in acquiring and managing (re)insurance undertakings. While PE actors can bring potential benefits to the sector, their business strategies, ownership structures, asset allocations and governance arrangements can also pose challenges for effective supervision.

To support the appropriate supervision of PE-backed (re)insurers – both ahead of authorisation and on an ongoing basis thereafter – the supervisory statement highlights the key areas that supervisors should assess and closely monitor.