Hi I have read that the regulator may impose reorganisation measures on an insurer that may imminently breach minimum solvency capital requirements. Is this describing restructuring the business so as to reduce capital requirements, e.g. reducing number of funds? What else could be done to restructure and reduce capital requirements? If it is not referring to restructuring, what does it mean? Thank you, Rachael
Restructuring could either be in terms of the company structure (eg requiring the company to sell a subsidiary, or to merge with another company, or even put itself up for sale, or convert from being a mutual to a proprietary) or in terms of the capital base, ie financial restructuring (eg swapping debt for equity, or reorganising debt such as by rescheduling repayments).
