Global Insurer Mergers & Acquisitions in 2017 - Repositioning to Face the Future
Conning—2017 Insurer Mergers & Acquisitions Tactically Focused, Future Focused
(Hartford, CT) March 8, 2018—Insurer mergers and acquisitions moderated in 2017, and were focused on tactical acquisitions and divestitures to better position for future profitability, according to a new study by Conning.
“Insurer merger and acquisition activity in 2017 continued at the levels seen in 2016, which were itself a retreat from prior years’ levels,” said Jerry Theodorou, Vice President, Insurance Research at Conning. “These lower activity levels were due in part to the moderate economic growth and the uncertainty regarding tax reform, which finally resolved in December with passage of the Tax Cuts and Jobs Act.”
The Conning study, “Global Insurer Mergers & Acquisitions in 2017: Repositioning to Face the Future” 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.
“Insurer mergers and acquisitions in 2017 centered around bolt-on property-casualty specialty acquisitions, run-off dispositions in both the life and property-casualty sectors, and vertical integration in the health/managed care sector,” said Steve Webersen, Head of Insurance Research at Conning. “Large-scale consolidations were conspicuously absent, and the recurring theme was tactically driven divestitures and acquisitions meant to reposition insurers to face the future. The repositioning was especially evident among life insurers exiting certain geographies, products and run-off businesses. Many of the buyers were newly formed firms, attracted to the asset management opportunities afforded by life insurer portfolios. Insurers actively exited underperforming lines and entered specialty segments offering healthier growth and margin prospects.”
“Global Insurer Mergers & Acquisitions in 2017: Repositioning to Face the Future” 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 approximately $121 billion in global assets under management as of December 31, 2017.* 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, 2017, 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.