Global Insurer Mergers & Acquisitions in 2015: The Big Bang
Conning—Global Insurer M&A Transaction Values Reach $195 Billion in 2015
--24 transactions valued at $1 billion or more
(Hartford, CT) March 16, 2016—The aggregate value of global insurance transactions in 2015 was four times higher than in 2014, while the number of $1 billion-plus transactions announced was three times higher than the recent annual average, according to a new study by Conning, Inc.
“Record setting global mergers and acquisitions activity in 2015 was characterized by an unprecedented number of high-value strategic transactions,” said Jerry Theodorou, Vice President, Insurance Research at Conning, Inc. “Close to half of the billion-dollar-plus transactions were outbound transactions by Japanese and Chinese buyers, as the Japanese sought external growth opportunities and the Chinese pursued asset accumulation and diversification strategies. Four consolidation transactions among U.S. health insurers alone, valued at $100 billion, accounted for more than half of the global insurer mergers and acquisitions value.”
The Conning study, “Global Insurer Mergers & Acquisitions in 2015: The Big Bang” tracks and analyzes both U.S. and non-U.S. insurer M&A activity across property-casualty, life-annuity and health insurance sectors. Specific transactions are detailed, and trends are analyzed across all sectors.
“M&A activity in 2015 was driven by continued low interest rates, high levels of industry capital, and low-growth economies in developed countries,” said Steve Webersen, Head of Insurance Research at Conning, Inc. “While many of these issues have been in place for some time, they came to a head in 2015, as insurers capitulated to the need for acquisitions to spur growth. Looking forward, the transformative consolidations of 2015 may pressure other competitors to merge, and may also provide opportunities for mid-market players as certain components of the merged businesses are spun off and talent is displaced.”
“Global Insurer Mergers & Acquisitions in 2015: The Big Bang” 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.