Cutting capital constraints

A number of value-in-force transactions based on future Asian insurance profits, including seldom-seen cash monetisation deals, are being looked at behind closed doors as a means to ease constraints on capital for insurance groups. But activity may remain patchy. Harry Thompson reports

Value-in-force (VIF) monetisation transactions have been around in Europe for some time. But they appear less common in Asia, although opacity in the market makes it difficult to assess exactly how much business is being done.

But the evidence suggests VIF activity is heating up in Asia and a number of significant deals are either in the works or have already been completed. VIF transactions are also highly bespoke, dependent on a number of factors for their efficacy, including regulatory