New York and London partner Tom Dawson recently spoke at the American Conference Institute’s 10th National Forum on Insurance Regulation, where he discussed regulatory issues for private equity investment in insurance companies.
Shortly after the conference, Tom was quoted in a Best’s Review article titled, “A New Reinsurance Breed.” The article discussed hedge fund investors’ motivation to start their own reinsurance companies and the criticism they are receiving.
Tom commented on this strategy. “Obviously, you have premiums coming in and you’ve got claims that have to get paid,” he said. “But you’ve also got, as Warren Buffett famously talks about, ‘the float’ that insurance companies have that you get to invest over time and if you’re good, you can make some money investing.”