Global Insurance Distribution & Services Sector Mergers & Acquisitions - The Beat Goes On...
Conning—Conditions for Insurance Distribution & Services Consolidation Continue
-- 2016 U.S. insurance distribution transaction volume above five-year average
(Hartford, CT) April 3, 2017—While the mergers and acquisitions market for distribution and services cooled slightly in 2016 from the prior year, market conditions continue to support high levels of M&A activity going forward, according to a new study by Conning.
“Consolidation of insurance distributors continued at a rapid pace through 2016 and into 2017,” said Alan Dobbins, a Director, Insurance Research at Conning. “A strong economy has done its part to create a rising tide of increasing exposures and continued attractive financing costs. It seems that M&A has replaced organic growth for many in the insurance distribution sector.”
The Conning study, “Global Insurance Distribution & Services Sector Mergers & Acquisitions: The Beat Goes On…” 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.
“We identified 368 distribution related transactions in the U.S.,” said Steve Webersen, Head of Insurance Research at Conning. “The greatest appetites reside with the insurance brokers and their private equity sponsors. As the consolidation has continued over the years, valuations have risen accordingly. However, while demand will likely remain high going forward, the market will have difficulty sustaining these high multiples in the face of rising interest rates.”
“Global Insurance Distribution & Services Sector Mergers & Acquisitions: The Beat Goes On… ” is available for purchase from Conning by calling (888) 707-1177 or by visiting www.conningresearch.com.
Conning (www.conning.com) is a leading global investment management firm with almost $109 billion in global assets under management as of December 31, 2016.* With a long history of serving the insurance industry, Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, award-winning risk modeling software, and industry research. Founded in 1912, Conning has offices in Boston, Cologne, Hartford, Hong Kong, London, New York, and Tokyo.
*As of December 31, 2016, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited, and Cathay Securities Investment Trust Co., Ltd. ("SITE"). SITE reports internally into Conning Asia Pacific Limited, but is a separate legal entity under Cathay Financial Holding Co., Ltd. which is the ultimate controlling parent of all Conning entities.