April 11, 2019
Conning—2018 Insurance Distribution and Services Mergers and Acquisitions Push the Pace
HARTFORD, CT, April 11, 2019—Global insurance distribution mergers and acquisition counts in 2018 surpassed the record setting prior year, keeping the consolidation phenomenon full steam ahead according to a new study by Conning. For service sectors and life/health distributors, activity in 2018 was a continuation of robust prior trends as well.
“Major distributors continued their acquisition spree,” said Jerry Theodorou, a Vice-President, Insurance Research. “Private equity remains a major force in competition for deals and driving higher valuations. Acquirers of insurance service providers continue to concentrate on technology companies that can enhance and broaden capabilities. This trend extends across all three insurance sectors—Property-Casualty, Life, and Health. Health insurers are strongly focused on acquiring companies that contribute to vertical integration up and down the value chain.”
The Conning study, “Global Insurance Distribution & Services Mergers & Acquisitions in 2018: Full Steam Ahead” is a review of global transactions for both property-casualty and life-health for 2018, including historical comparisons. The study includes an in-depth analysis of key drivers of mergers and acquisitions activity, the major themes of the year, detailed reviews of major transactions, and patterns in who the buyers are, and the types of firms targeted. The outlook for 2019 mergers and acquisitions drivers and activity is also presented.
“Conditions remain ripe for deal making,” said Steve Webersen, Head of Insurance Research at Conning. “High valuations encourage sellers, low cost of debt enables buyers, and an ample supply of capital creates competition for deals which have all contributed to an ecosystem that is driving unprecedented levels of transactions for insurance distributors, specifically in the Property-Casualty space. Conning anticipates that the number and volume of acquisitions will continue strong in 2019.”
“Global Insurance Distribution & Services Mergers & Acquisitions in 2018: Full Steam Ahead” is available for purchase from Conning by calling (888) 707-1177 or by visiting www.conningresearch.com.
Conning (www.conning.com) is a leading investment management firm with approximately $133 billion in global assets under management as of December 31, 2018.* With a long history of serving the insurance industry, Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, award-winning risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
*As of December 31, 2018, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited, Cathay Securities Investment Trust Co., Ltd. (“SITE”) and Global Evolution Fondsmæglerselskab A/S and its group of companies (the “Global Evolution Companies”). The Global Evolution Companies are affiliates of Conning. SITE reports internally into Conning Asia Pacific Limited, but is a separate legal entity under Cathay Financial Holding Co., Ltd. which is the ultimate controlling parent of all Conning controlled entities.