Perpetual sub debt from insurers appeals to investors

Insurers are tapping the Asia market to raise capital, with innovatively structured instruments. Investor appetite for this debt has enabled insurers to move from classical issuance structures to perpetual notes

Last year proved to be a good year for the insurance sector in relation to its ability to raise capital from investors, with the Asian market a particular draw for insurers looking to raise debt capital. In January 2012, Zurich completed a $500 million perpetual subordinated debt transaction, in which Asian investors accounted for 77% of the transaction's investors. UK-based investors accounted for 13% of investors in the notes, while Swiss investors made up 7%, and US offshore and others