Capital Raising

Our work on capital raisings for insurers combines the strength of our leading financing practice with the expertise of our specialist insurance practitioners - most notably in our work on subordinated debt issues and note programmes for insurers, where we regularly act for some of the largest companies in the sector.

Advising on subordinated debt issues for insurers is particularly complex at present because of the need to satisfy existing regulatory requirements while anticipating the future requirements of the Solvency II directive. We have been at the forefront of advising on issues of Tier 1 and Tier 2 debt in this environment, including discussions with the regulator in respect of such issues.

We also have extensive experience of advising insurance companies on other types of capital raising, including:

  • IPOs
  • placings
  • preference share issues
  • rights issues
  • securitisations

Partner Contacts

Our key experience includes advising:

Aviva, Friends Life and Prudential on issues of subordinated debt including certain terms and conditions drafted to meet Solvency II features.

Aviva on its placing of a 15% stake in Delta Lloyd for gross cash proceeds of £381 million, further disposal of a 21% stake for approximately £320 million and disposal of its remaining stake of 19.4% for approximately £353 million.

Brit plc on its initial public offering of ordinary shares.

China Re on the US$2 billion (approx.) global offering and listing on the Main Board of the Hong Kong Stock Exchange of its H shares.

esure on its initial public offering of its ordinary shares and on its issuance of up to £125 million of subordinated notes in connection with the acquisition of 50% of Gocompare.com.

Prudential on the financing arrangements for its proposed combination with AIA, which were to include an issue of US$2 billion tier one notes, an underwritten rights issue and the issue to AIG of US$3 billion perpetual mandatory convertible securities converting to ordinary shares in Prudential, which were intended to count towards Prudential’s tier one capital resources.

RSA on its fully underwritten rights issue to raise approximately £773 million.

Standard Life on its return of around £1.75 billion to shareholders by way of a B/C share scheme.