An EEA Domiciled Specialist European Insurance Group

Current Status:

Active in life insurance, non-life insurance and reinsurance, the Group is active in several EU countries (Liechtenstein, UK, Germany, Austria, Switzerland, Italy, France, Belgium, Netherlands, and Luxembourg).

Requirements:

• The Group has identified potential investments into small & medium size, niche focus European insurance companies to add to the Group holdings.
• Structure to raise capital from existing policyholders and new investors including institutional monies.
• Low risk fund that they could use within their insurance wraps as an alternative to pure cash holdings for their clients.

Solution

• KMG created a fund with fairly broad investment objectives, covering asset backed securities issued by insurance/reinsurance companies, direct equity participation and purchase of bonds issued by insurance/reinsurance companies.
• KMG through Nucleus Euro-Advisers has identified IFA distribution channels within Italy and Germany which are attracted to the returns and risk profile of the fund.
• The fund will target a return of ECB base rate plus 2%.

The Benefits

• The fund will have global acceptance and ease of marketing across Europe and beyond allowing the Group to market as a stand alone investment.
• The Group will immediately have access to capital to fund their acquisitions largely available from their existing policyholders.

Conclusion

Time to market was a key element for the Group as they wanted to launch in Q1 2009, but only approached KMG mid December with their plans. With the KMG structure in place we were able to speak with our Luxembourg service providers over Christmas and New Year and finalise the details such that the Group can now achieve their objectives.