Financial regulation reform is changing how, and by whom, many insurance companies are regulated. Congress is working to restructure the regulatory framework that governs insurance companies and in the near future may adopt legislation that could preempt, or at least supplement at a federal level, the state regulation of insurance. This foundational shift, coupled with a rebounding economy, is prompting insurance companies to look for ways to consolidate — often through mergers and acquisitions.
Porter Wright attorneys have served as counsel for more than 35 insurance industry transactions valued at more than $8 billion. These transactions include affiliations, mergers, acquisitions, divestitures and tender offers. We understand that many companies can no longer count on investment income to balance underwriting risk. Scale and diversification, with regard to geography and product, are keys to success. We help clients achieve business objectives through strategic transactions, geographic expansion and diversifying lines of business.
As methodologies and policies focusing on financial viability and regulatory responsibility evolve, our attorneys stand ready with decades of experience in the insurance industry. Not only do we speak the language, but we’ve developed some of it; our attorneys have written provisions in the Ohio Insurance Code.
Captive insurance companies
Many businesses now are investigating the benefits of captive insurance companies. Captives may be an attractive risk management tool, especially when companies seek options for insuring excluded risks and addressing volatile or increasing premiums. Some promoters of captive insurance companies ignore common-sense management and taxation issues that can undermine the benefits of a captive. Porter Wright’s attorneys helped draft the Ohio captive law, participated in the founding of the Ohio Captive Insurance Association and serve on the Captive Association Leadership Council. Our attorneys educate clients about the benefits and risks of captives, then examine and establish captive arrangements that support clients’ business models, and comply with regulatory and taxation requirements applicable to captive insurance companies.
- Represent clients in insurance defense and coverage matters
- Represent clients in market conduct examinations
- Counsel during the formation of insurance companies, including captives
- Advise on strategic transactions, including acquisitions, mergers, affiliations and surplus note offerings
- Counsel on compliance and governance
- Advise on formation and compliance issues associated with captive insurance companies and risk retention groups