Stonybrook Capital Focuses on Mutuals

Tuesday, February 21, 2017 3:30 PM UTC

NEW YORK, Feb. 21, 2017 -- Stonybrook Capital issued the following letter:

Dear friends of Stonybrook Capital,

Focus is the key to success in anything - and we are focused. Focusing on the "insurance industry vertical" is still a little broad and as such, we, as a firm have narrowed our focus to only a small number of sub-sectors within the insurance industry vertical and the mutual sector is one of the most important areas where we will drive our firm over the next number of years. We strive each and every day to be THE investment banker of choice. There is a lot going on in the mutual sector and we have a white paper coming out in a few weeks about this very topic - why is there so much activity? In anticipation of that and just given everything that is going on, I thought it might be noteworthy to do a little bit of a deep dive analysis into two specific situations about which you are probably aware: (1) American Family's process to create a mutual holding company structure, and (2) Nodak's same process but what is more, anticipating a public offering of stock later this year. We put together a few slides on these topics as well as a handful of thoughts on the sector from 500,000 feet; e.g. hybrid capital appears to be back for the first time since the 2008/2009 credit crisis - long term surplus notes for which a company can receive equity capital treatment in its rating agency capital adequacy models. Finally, what would a presentation be without a little Stonybrook Capital commercial. We hope you enjoy the notes. We will be attending all of the upcoming conferences (e.g. AM Best's Review-Preview, NAMIC Management Conference, PCI Exec Roundtable, Insurance Journal - Demotech, the list goes on...) and hope to see you there or the next time you are in New York.

Thank you and hopefully you find these attached materials helpful.

A PDF accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/edb7b671-1a18-4ee8-8ea2-27dd82eef929