Tom Vandever on low interest rates, debt financing, IPO market and insurtech valuations: Part II

Episode 23,   Sep 01, 2020, 03:37 PM

In the second instalment of our two-part interview with Managing Director and Head of FIG Americas at Barclays, Tom Vandever, we discuss low interest rates, debt financing, how carriers are looking to free up capital, the IPO market, and insurtech valuations.

We begin by asking Tom what impact lower for longer interest rates will have on the P&C sector, including M&A dynamics.

Following a few notable insurance IPOs such as Palomar and Lemonade that have attracted investor interest, we discuss the IPO market and whether we are seeing the emergence of an insurtech bubble.

We also look at the impact of Covid-19 on interest from carriers and brokers in building and buying insurtech platforms, while Tom shares his view on the segment from a corporate finance and fundraising perspective. 

Finally, Tom talks about capital efficiencies, restructuring and freeing up capital for hard market opportunities, as well as how insurers are adapting their investment strategies to counter the volatility seen in H1 2020.

Part I can be found here and covers capital raising, start-ups and scale-ups, investor appetite, and how the pandemic has impacted M&A dynamics.