Unlisted securities held in life insurance: focus on private equity valuation

Luxembourg's insurance regulation permits a broad range of underlying investments in internal funds. These investments may manifest as unquoted/unlisted assets, depending on the overall investment strategy of the life insurance policy. Private equity vehicles have seen a signicant boom as an underlying assets class for life insurance policies, notably as a means to decorrelate performance from other assets classes and boost yields.

As investors in these specific and typically more complex assets, insurers encounter increased risks and challenges. These risks are not limited to valuation concerns but extend to legal, compliance, governance, and other policy management matters. These aspects need to be assessed and monitored continuously, especially for cross-border policies.

The imperative for comprehensive and streamlined processes and controls is heightened, and implementing a clear action plan to address these challenges should be considered a priority.

In close collaboration with PwC's subject matter experts, PwC's Academy has designed a training made of 4 complementary building blocks to offer an effective, flexible and cost-efficient approach for insurance professionals to build-up and maintain their knowledge and competence in regards to the non-standard assets held in insurance:

Insurance non-standard assets - The essentials (2h)
Insurance non-standard assets - Business case (2h)
Unlisted securities held in life insurance: focus on private equity valuation (2h)
Unlisted securities held in life insurance: focus on real estate valuation (2h)

By the end of this training, participants will be able to:

• obtain a comprehensive knowledge on valuation concepts specific to private equity assets held in life insurance;
• understand recognised valuation methodologies (including valuation allocation techniques).

• Key concepts in private equity valuations
• Recognised valuation methodologies
• Quote price in the context of a private equity/venture capital asset valuations
• Practical considerations
• Case study

This training is coordinated by Anthony Dault, Partner, and Samir Moussaoui, Director at PwC Luxembourg.

Anthony is a partner specialised in insurance/reinsurance and international tax structure, and is actively involved in PwC Luxembourg Reinsurance and Insurance Group (RIG), including the insurance and reinsurance regulatory team. Anthony has more than 18 years of experience serving several multinationals, subsidiaries of European and US registered companies reporting under IFRS or Lux GAAP in the insurance and reinsurance sector, starting in 2003 in PwC Paris insurance department and in PwC Luxembourg. In the past years, Anthony has been involved in the development of the PwC Luxembourg insurance regulatory practice, with a strong focus on cross-border distribution as well as regulatory licensing projects. In that context, he co-heads the IDD service offering of PwC Luxembourg, and is a member of the ACA IDD working group.

Samir joined PwC in 2012 and is a director within our Alternatives Valuation Services (AVS) practice.
He has developed expertise of the private equity industry in the context of assurance engagements, with a focus on business valuations and modelling. He gained an extensive knowledge and set of skills on valuation processes, techniques, and market practices along with the relevant auditing skills.
Samir helps lead our AVS practice in managing and delivering a diverse range of alternative investments and assets valuation engagements, in the context of assurance and non-assurance services, to local and international clients and PwC offices. He has exposure to a wide range of valuation methodologies such as discounted cash flow models, trading and transaction multiple valuations, net asset value approach as well as milestone analyses, primarily in the context of financial reporting.
Samir is Chartered Financial Analyst (CFA) and Chartered Valuation Surveyor (MRICS).