Oliver Tattan, the serial health insurance entrepreneur, has founded a new business to raise debt to finance Europe's mid-size insurers which require €3bn a year annually in new capital.
Mr Tattan, a former chief executive of the VHI and founder of Vivas Insurance, has identified up to 40 mid-sized insurers interested in using debt to expand their balance sheets while meeting new European Union solvency rules.
"Mid-size insurers don't have a way of growing at the moment besides using their retained profits," Mr Tattan said, "We're allowing them get new capital for growth."
Mr Tattan's new venture, Insurance Regulatory Capital, also involves Stephen Loughman, former finance director of Vivas, and Maria Teresa Kelly Oroz, Vivas' former legal and regulatory director. "We're confident that we now have the deal flow," Mr Tattan said, "so we've started fundraising [from pension funds and other investors]."
Aogan Foley, an investment banker and founder of Incisive Capital, is advising Mr Tattan and is a director of Insurance Reg Cap. The new company has offices in London and Dublin.
"This is a very large niche market," Mr Tattan said. "We'd love to do something in Ireland as well as over there which is our main focus."
Vivas was founded by Mr Tattan in 2004 with the backing of Dermot Desmond, the billionaire financier. Mr Tattan was estimated to have bagged €10m when the business was sold to Aviva in 2008.
Sunday Indo Business