Global Insurance Underwriting Sectors Mergers & Acquisitions: The Market Heats Up in 2014
Conning—Insurer Mergers & Acquisitions Strong in 2014 and Continuing in 2015
(Hartford, CT) March 23, 2015—Mergers and acquisitions among insurers accelerated in 2014, and continued to strengthen in the first quarter of 2015, according to a new study by Conning.
“Insurer merger and acquisition activity picked up measurably in 2014 and into early 2015, both in the U.S. and globally, following a sluggish run in 2012-13,” said Jerry Theodorou, analyst at Conning. “The rise in insurance M&A activity in 2014 was fueled in part by alternative capital and the perceived need to achieve greater scale by property-casualty and life-annuity insurers. In the current environment of low interest rates and low economic growth, many insurers acted on the belief that growth objectives could be more readily attained by inorganic rather than by organic means.”
The Conning study, “Global Insurance Underwriting Sectors Mergers & Acquisitions: The Market Heats Up in 2014” tracks and analyzes both U.S. and non-U.S. insurer M&A activity across property-casualty, life-annuity and health sectors. Specific transactions are detailed, and trends are analyzed across all sectors.
“In recent years, many capital-rich insurers refrained from mergers and acquisitions and stayed on the sidelines, held back by lack of sufficient confidence in the future economic environment,” said Steve Webersen, director of research at Conning. “However, five years of slow but positive economic growth have restored that confidence. Property-casualty transactions in the U.S. rose 31 percent in the year, while values rose by 52 percent, driven by buyers’ desire for diversification, customer relevance and by consolidation among reinsurers. In the life-annuity sector, the number of U.S. transactions actually declined, yet the value of those transactions more than doubled, as life insurers sought new markets and added to their asset management capabilities.”
“Global Insurance Underwriting Sectors Mergers & Acquisitions: The Market Heats Up in 2014” 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 $94 billion in assets under management as of December 31, 2014 through Conning, Inc., Conning Asset Management Limited, Cathay Conning Asset Management Limited, Goodwin Capital Advisers, Inc., and Conning Investment Products, Inc. Conning’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. Conning is headquartered in Hartford, Connecticut, with additional offices in New York, London, Cologne, and Hong Kong.