Tom Vandever on capital raising, investor appetite and M&A dynamics: Part I

Episode 22,   Aug 31, 2020, 08:06 PM

In our latest edition on The Best Policy as part of #REinsuranceMonth, we are joined by Tom Vandever, Managing Director and Head of FIG Americas at Barclays.

In the first half of our two-part interview, we discuss capital raising, start-ups and scale-ups, investor appetite, and how the pandemic has impacted M&A dynamics.

We begin by asking Tom about post Covid-19 capital raising, how it compares to previous cyclical shifts and whether we are witnessing a true class of 2020.

Tom talks about overall investor interest in the P&C industry and what is driving PE interest in the carrier sector, as well as how much interest he is seeing from carriers in structuring sidecars and similar vehicles.

We look at the practical impact the shutdown and financial markets turmoil had on M&A across the sector, how the deal-making process has changed in response, and whether we are beginning to see a return to normal.

Finally, we consider how the M&A dynamics have changed post Covid-19 in the distribution space and where Tom expects to see the next wave of M&A within distribution.

The next episode will air this week and will focus on low interest rates, debt financing, how carriers are looking to free up capital, the IPO market, and insurtech valuations.