Conning—U.S. Insurance Mergers & Acquisitions Activity Declined in 2013 Despite Favorable Conditions
--Transactions off 6.7%, aggregate deal values off 55.3%
(Hartford, CT) March 13, 2014—2013 proved to be a weak year for deal flow in the insurance industry—particularly in risk-bearing sectors, according to a new study by Conning.
“Mergers and acquisitions activity lagged in 2013 in all insurance sectors except distribution,” said Jerry Theodorou, analyst at Conning. “Property-casualty transactions—driven by the mildly improving economy—still declined to the lowest level since the financial crisis. The life-annuity industry aggregate deal value was off by almost half, due mainly to the slowdown in financial buyer acquisitions of annuity businesses. Health insurance transactions and deal values took a nosedive in 2013, as carriers turned from preparation for the Affordable Care Act to implementation activities in the year.”
The Conning study, “Global Insurance Mergers & Acquisitions: A Tale of Two Markets” tracks and analyzes both U.S. and non-U.S. insurance industry M&A activity across property-casualty, life-annuity, health insurance and distribution and services sectors.
“Mergers and acquisitions in the U.S. insurance services sector in 2013 continued close to the high level of 2012,” said Steve Webersen, director of research at Conning. “Private equity investors were again attracted to insurance technology and claims services businesses due to the high reported margins. Meanwhile, in the insurance distribution sector, 2013 insurance broker/agent transactions declined slightly from prior year, but aggregate deal value rose, again driven in large part by private equity participation.”
“Global Insurance Mergers & Acquisitions: A Tale of Two Markets” 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 more than $83 billion in assets under management as of December 31, 2013 through Conning, Inc., Conning Asset Management Limited, Cathay Conning Asset Management Limited, and Goodwin Capital Advisers, Inc. 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 is focused on the future, providing clients with innovative solutions, leveraging its global capabilities, investment experience, and proprietary research. The company is headquartered in Hartford, Connecticut, with additional offices in Purchase, London, Cologne, and Hong Kong.