Insurance M&A normalising

Insurance M&A normalising

According to a new report from law firm Clyde & Co, levels of mergers and acquisitions (M&A) in global insurance have returned to normal, with the second half of 2017 showing an uptick in deals with the first time in a two-year period.The most active region was the Americas, with both Europe and Asia suffering due to the effects of Brexit and Chinese regulatory uncertainty, respectively.

According to a new report from law firm Clyde & Co, levels of mergers and acquisitions (M&A) in global insurance have returned to normal, with the second half of 2017 showing an uptick in deals with the first time in a two-year period.The most active region was the Americas, with both Europe and Asia suffering due to the effects of Brexit and Chinese regulatory uncertainty, respectively.

“After a lacklustre couple of years for transactions, this rise in activity indicates a renewed level of confidence in deal making as a tried and tested route to growth,” said Andrew Holderness, Global Head of Corporate Insurance at Clyde & Co. “Following on from the uptick at the end of last year, deal making has already got off to a quick start in 2018, with a number of high-profile deals announced, including those involving AIG/Validus and Axa/XL Group. We expect this momentum to continue with M&A returning to form as insurance businesses seek to build scale and geographic reach, generate efficiencies and deploy innovative technologies to access new customers with new products through new channels. Alongside M&A, insurtech is poised to become a mainstream driver for growth in the insurance sector.”