Why combine banks and insurance companies now?
The advantage of a banking charter are: low-cost funding; fee-based income; asset flexibility; prudent maturity-transformational options; wealth management opportunities; and cross-marketing. Banks seeking acquisition will find new buyers and better pricing through understanding these benefits.
Why fear the Federal Reserve?
The Federal Reserve’s final capital rules may not require insurance companies to greatly increase capital. For insurance companies that are not SIFIs (systemically important financial institutions), i.e. all but the largest firms, Federal Reserve supervision and regulation may not be too costly and burdensome. On the other hand, there are prohibitions on certain affiliate transactions, and Fed supervision can be intrusive throughout the organization, and the new capital ratios may still be too costly.
Why fear the FDIC?
The FDIC may start approving FDIC insurance applications again for de novo banks, which provide another option for insurance companies to enter the banking business. Approval may also be given for limited purpose banks that limit their activities to one or a few banking functions, such as lending.
The educations objectives are to learn:
- Whether non-traditional M&A is right for your company
- The odds for success of chartering or acquiring a bank or being acquired by an insurer
- Obstacles to overcome to get the deal done
- How to think about the likely return on investment
Who would benefit most from attending this program?
Insurance company execs; corporate development professionals; investment bankers; buy-side analysts; in-house and outside counsel.
John Beaty, Partner, Financial Services Practice, Venable LLP
Ronald R. Glancz, Partner, Financial Services Practice, Venable LLP
Karen Shaw Petrou, Managing Partner, Federal Financial Analytics, Inc.
Bridget Hagan, Partner, The Cypress Group
Registration Fee: $224
(Use promo code FIRMDISC25 to get 25% off the registration fee.)