Global Insurance Distribution & Services Sector Mergers & Acquisitions: Building for the Future
Conning—Insurance Distribution & Services Consolidation Continues
--2015 Global transactions up 10 percent; U.S. transactions up 18 percent
(Hartford, CT) March 29, 2016—The insurance industry saw significant increases in both insurance distribution and insurance services mergers and acquisitions globally in 2015, according to a new study by Conning, Inc.
“The distribution sector remains in a state of consolidation, with the number of global mergers and acquisitions transactions increasing for a third consecutive year,” said Jerry Theodorou, Vice President, Insurance Research at Conning. “Additionally, deal volume in the aggregate reached a new high in 2015 at nearly $20 billion, albeit driven by one significant transaction. Beyond the Willis/Towers Watson transaction, M&A activity in 2015 was highlighted by fewer transformational deals but a number of bolt-on transactions that help the buyers build out broader product offerings.”
The Conning study, “Global Insurance Distribution & Services Sector Mergers & Acquisitions: Building for the Future” tracks and analyzes both U.S. and non-U.S. insurance industry M&A activity across distribution and services sectors. Specific transactions are detailed, and trends are analyzed across both sectors.
“Facing a challenging business environment, strategic distribution buyers turned to transactions as an attractive way to grow and build out their platforms to serve clients,” said Steve Webersen, Head of Insurance Research at Conning, Inc. “Separately, the insurance services sector transactions increased more than 25 percent, driven by acquisitions of claims adjusters/TPAs, health services firms, and insurance technology providers. The technological transformation occurring in the insurance industry is creating interest from buyers looking for big data and predictive analytic technologies as well as greater capabilities to meet the demands associated with a changing health care environment, such as the roll-out of the Affordable Care Act.”
“Global Insurance Distribution & Services Sector Mergers & Acquisitions: Building for the Future” is available for purchase from Conning by calling (888) 707-1177 or by visiting the company’s web site at www.conningresearch.com.
Conning (www.conning.com) is a leading investment management company for the global insurance industry, with over $88 billion in assets under management as of December 31, 2015, through Conning, Inc., Conning Asset Management Limited, Cathay Conning Asset Management Limited, Goodwin Capital Advisers, Inc., and Conning Investment Products, Inc. that are all direct or indirect subsidiaries of Conning Holdings Limited. Octagon Credit Investors, LLC is also a subsidiary of Conning Holdings Limited (with all of the foregoing collectively known as “Conning”) which is one of the family of companies owned by Cathay Financial Holding Co., Ltd., a Taiwan-based company. The company's unique combination of asset management, risk and capital management solutions and insurance research helps clients achieve their financial goals through customized business and investment strategies. Founded in 1912, Conning provides clients with innovative solutions, leveraging its global capabilities, investment experience, proprietary research and risk management technology. Headquartered in Hartford, Connecticut, Conning also has offices in New York, London, Cologne, Hong Kong, and Tokyo.