The banking report—capital raising


CAPITAL IDEAS


The process of raising capital is a critical one for insurers and


reinsurers—the ability to do so quickly can mean the difference between seizing and missing an opportunity. Intelligent Insurer looks at the kind of support banks can provide throughout the process.


W


hen seeking advice on any capital-raising transaction, it is important to know that the banks advising have an excellent understanding of the issues and the skills to execute a


transaction smoothly. “This means having very good market colour and being in touch with


the investors,” says Aditya Dutt, senior vice president at RenaissanceRe. “In terms of good execution, it means knowing how to get a deal done. This refers not only to price, but also to knowing the objective of the investor as well as our objective in pursuing a fi nancing transaction.


“When you are an infrequent issuer of securities—about once a year


or whatever the life cycle happens to be—it is really important that whomever you work with has the right contacts and is in the market. This means working with someone who has done a lot of transactions because they know what it takes to get something done. This is really valuable to us because when we go to market we like to have it done very effi ciently.”


Patrick Boisvert, chief fi nancial offi cer at Flagstone Re agrees, saying


that a bank’s knowledge of the markets is invaluable. “Most banks follow the market very closely and can be quite proactive


when it comes to suggesting possible solutions to CFOs,” he says. 34 | INTELLIGENT INSURER | September 2011


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