A Guide to Using Insurance as a Tax, Financing and Capital Solution

(446 Ratings)

Produced on: February 13, 2018

Course Format On Demand Audio

Taught by

Categories:

Course Description

Time 91 minutes
Difficulty Intermediate

Clients depend on their lawyers for creative solutions to risks they face in their day-to-day business, and to resolve roadblocks that prevent important transactions from closing. In this program, Kenneth R. Pierce will discuss the use of specialty insurance products to indemnify clients for potential tax liability, to achieve tax and regulatory capital efficient investment returns, and to facilitate the financing of alternative assets.

“Reps and warranties” insurance is now a standard tool to facilitate mergers and acquisitions.  In this course, Mr. Pierce will go “beyond reps,” providing case studies and transaction diagrams to illustrate how insurance is being used in novel ways for broader corporate finance purposes.  It is critical for lawyers to be aware of the existence of these insurance products and to be equipped to structure and negotiate the terms of coverage which are necessary to achieve their clients’ objectives.

Learning Objectives:

  1. Review the background of traditional risk mitigation in corporate transactions, including the use of insurance as a risk management tool
  2. Discuss the basics of tax insurance, the types of tax risks that are insurable, the underwriting and submissions process, and additional considerations
  3. Grasp “COLI” or Corporate Owned Life Insurance, including an overview of the IRC Section 101(j), and the process of using a variable COLI policy
  4. Facilitate asset-based financings using insurance, understand the relevant assets, typical asset-financing structure, and the growing market for insurance wrap as a solution
  5. Use insurance to reduce risk based capital charges and enhance credit

Faculty

Kenneth Pierce

Vanbridge LLC

Kenneth R. Pierce is a Managing Principal of Vanbridge LLC. Mr. Pierce has over 30 years of experience, serving the insurance industry as both a lawyer and as a lead structurer within investment banks. Prior to joining Vanbridge, Mr. Pierce was a senior partner and Global Head of the Insurance Industry Group at Mayer Brown LLP. Prior to his career at Mayer Brown, Mr. Pierce was an Executive Director and co-head of Reinsurance Solutions at Morgan Stanley, a partner at Cadwalader, Wickersham & Taft, and a Senior Vice President at Lehman Brothers, where he was part of the pioneering team that founded Lehman Re Ltd. and worked on some of the first catastrophe bonds, XXX solutions and other convergence products.

Mr. Pierce has been at the forefront of the insurance-capital markets convergence area for the past 15 years. Chambers USA described Ken as “peerless in terms of structuring acumen, given decades of first-hand experience not only as an attorney but also as an investment banker in the insurance industry.” Mr. Pierce has been the lead structurer on more than 100 reinsurance convergence transactions, including sidecars, cat bonds, life insurance capital relief, reserve financing, embedded value and closed block financings, runoff, pension de-risking, life settlement, private placement life insurance, and many other transactions aggregating to several billion dollars.

Mr. Pierce received his A.B. from Brown University, magna cum laude, Phi Beta Kappa and his J.D. from Harvard Law School.

Reviews

TM
Thomas M.

Great Information

PS
Philip S.

Opens a new area of opportunity that I didn't realize existed. Seems like enterprising attorneys and others can invent income opportunities as they go along.

MB
Mark B.

It was a very interesting course.

NG
Neelima G.

Learned a lot!

BB
Brett B.

The presenter did a thorough job of covering a complicated and multi-faceted area that not only impacts our legal practice as attorneys, but also has substantial value for Partners in Firms that are business owners and can obtain additional practical value from this presentation.

KM
Kevin M.

Excellent presentation. We're seeing more and more insurance in M&A transactions.

MT
Maeve T.

Really Fantastic!

SS
Steve S.

Excellent

SA
Salim A.

Very Good

WK
William K.

Very timely course

GN
George N.

Excellent excellent course

KL
Kenneth L.

great program. very interesting

TH
Tom H.

Very strong presentation.

JF
Jeffrey F.

very interesting. well presented .

KW
Kevin W.

Very interesting and unique subject matter! A very skilled and knowledgeable presenter, too!

AM
Antoine M.

Attorney was well-prepared and thorough

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$89

$ 89 Tax Law, Insurance Law, and Business, Corporate, & Securities Law In Stock

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