Global Insurance Mergers & Acquisitions in 2012: Fragmented Patterns in an Uncertain Environment


Michael Warner
Conning, Inc.

Conning—2012 U.S. Insurance Mergers & Acquisitions Activity Drops Despite Favorable Conditions

--Transactions off 19%; aggregate deal values off 21%

--Last quarter of 2012 showed significant uptick

(Hartford, CT) March 20, 2013— In 2012, U.S. insurance mergers and acquisitions activity fell sharply, despite conventional drivers that seemed to suggest what should have been an active year for insurance M&A, according to Conning’s annual study “Global Insurance Mergers & Acquisitions.”

“Mergers and acquisition activity in the U.S. insurance market dropped in 2012, with transactions off 19% and aggregate deal volume off 21%,” said Jerry Theodorou, analyst at Conning. “In 2012, high levels of industry capital and limited opportunity for organic growth suggested that it should have been a very active year. Yet transaction activity declined significantly from 2011.”

The Conning study, “Global Insurance Mergers & Acquisitions in 2012: Fragmented Patterns in an Uncertain Environment” 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. 

“Insurance M&A activity in the U.S. started strong in the first quarter of 2012. However, the following two quarters were very slow, as concerns about U.S. economy and economic conditions elsewhere had chilling effects,” said Stephan Christiansen, director of research at Conning. “That turned around significantly in the fourth quarter, where we saw a substantial uptick in activity in most sectors, which may well set the stage for a strong 2013. Outside the U.S., the pace of insurance M&A declined less, buoyed by financial institutions selling their insurance operations to raise assets to repay government loans or meet regulatory requirements.”

About Conning

Conning ( is a leading investment management company for the global insurance industry, with more than $91 billion in assets under management as of December 31, 2012 through Conning, Inc., Conning Asset Management Limited, Cathay Conning Asset Management Limited, and Goodwin Capital Advisers. 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.