• Contact Us
  • About
  • Advertise
  • Privacy & Policy
Tuesday, June 6, 2023
  • Login
  • Register
Business Post
E3P Motor Insurance
  • Home
  • Insurance
  • Pension
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
  • Home
  • Insurance
  • Pension
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
No Result
View All Result
Business Post
No Result
View All Result
Home Insurance

Strategic Disposals, Technology And Regulators Key Insurance M&A Drivers Globally

Staff Reporter by Staff Reporter
August 24, 2021
in Insurance
0 0
0
0
SHARES
22
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

Global insurance industry M&A dipped slightly in the first half of 2021 with 197 deals completed worldwide – down from 206 in the second half of 2020 and 201 at the same point last year, according to Clyde & Co’s mid-year Insurance Growth Report.

The Americas led the way with 116 deals, up from 102, pushing M&A in the region to its highest level since 2015.

After a steep drop in transactions in 2020, Europe held steady in H1 2021 with 51 completed deals, up one on the previous six-month period. The UK was the leading European country – and second most active worldwide behind the US – ahead of Spain and Germany.

APAC saw completed deals fall from 37 to 18 – the lowest level since Clyde & Co began its report in 2011 – as post-pandemic and geopolitical uncertainty weighed heavy on deal-makers. Japanese acquirors were again the most active.

Activity in the Middle East and Africa dropped back with only five completed transactions in the first half of this year. These all involved Middle East acquirors – two from Israel and one each from Egypt, Saudi Arabia and the UAE.

Ivor Edwards, partner and European head of corporate insurance at Clyde & Co, said: “Despite the challenges of the last 18 months, the insurance industry has responded well and demonstrated a re-markable degree of resilience when it comes to getting deals over the line. Market hardening is creating organic growth opportunities for re/insurance carriers, but the availability of cheap liquidity, active inter-est from private equity investors and strategic re-underwriting of portfolios at larger carriers signal that an uptick in M&A is likely. The extent of that increase will vary by region and investor sentiment – deal-makers in the US are comparatively bullish whereas their counterparts in Asia-Pacific remain more cau-tious as they wait for a more positive economic outlook.”

There were 11 deals in H1 2021 valued at over US$1bn, compared with 15 in the whole of 2020, includ-ing the largest of the period, the sale of UK-headquartered RSA to Regent Bidco for US$9.2bn. In addition to the rise in big-ticket transactions, in a sign of a bifurcated market, there is an increasing number of more modest strategic divestments from carriers looking to focus on their core business as part of a long-term strategy.

The first half of the year also saw technology investments into a variety of businesses around the world including deals focusing on coverage to homeowners in catastrophe-prone regions, online insurance comparison platforms and digital healthcare.

The sharp drop in M&A activity in APAC can be attributed in part to the high regulatory bar in some jurisdictions, according to Clyde & Co’s Hong Kong partner, Joyce Chan. Not only do prospective ac-quirors face higher solvency capital requirements in some markets, but there is a more robust scrutiny of business plans to assess the longevity of new entrants’ interest.

“Regulators are becoming increasingly cautious. When new players come in and buy a particular insurer in the region, local regulators usually request quite a substantial capital increment as well,” Chan explains. “The solvency requirement expectation is much higher, acting as a brake on M&A. Conversely, regulatory actions are also making some significant portfolios available to acquirors. In Australia, for example, the knock-on effect of the recent Royal Commission is forcing the country’s major domestic banks to offload non-core lending businesses, which is making a number of attractive insurance assets targets for acquisition.”

Activity there is likely to remain subdued, the report’s authors said, until the markets have stabilised post-COVID-19, bringing with it greater economic certainty.

After a standout first six months of the year, the expectation is for more M&A to come in the US. And, although deal activity in Europe has continued steadily at a comparatively low level for a couple of years, there are signs that some of that region’s structural issues are being addressed.

Chart source: Clyde & Co, using data from Thomson Reuters, Alacra and Refinitiv

Source: www.cirmagazine.com
Previous Post

AIICO Leads With Instant Service On Social Media Platforms

Next Post

Insured Losses From Europe Floods Could Reach £5.6bn – RMS

Staff Reporter

Staff Reporter

Related Posts

Startup Showcase: ZIPHII LTD – Revolutionising Digital Experience Platform For Businesses
Insurance

Economy resilient to cyber attacks, but threat persists

June 6, 2023
Shipping Losses Down In 2022 But New Safety Challenges Emerge – Report
Insurance

Shipping Losses Down In 2022 But New Safety Challenges Emerge – Report

June 1, 2023
GNI Trashes Report It Has Surrendered Its Annuity Business
Insurance

GNI Trashes Report It Has Surrendered Its Annuity Business

May 31, 2023
Next Post
Insured Losses From Europe Floods Could Reach £5.6bn – RMS

Insured Losses From Europe Floods Could Reach £5.6bn - RMS

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

NEM INSURANCE NEM INSURANCE NEM INSURANCE
  • Trending
  • Comments
  • Latest
ILAN Picture

Loss Adjusters Receive Charge To Match Speed Of New Developments

July 30, 2022
Custodian Investment To Acquire 51% Stake In UACN Property

Penetration: Operators Call For Insurance-In-Action

November 2, 2022
tope smart NIA former chairman

Insurance Milestone: A Beacon To Follow

April 3, 2022
ncrib logo

NCRIB And Universal In Pictures

August 23, 2020
Reinsurance Rates May Increase Into 2022, But Momentum To Wane: Fitch

Reinsurance Rates May Increase Into 2022, But Momentum To Wane: Fitch

April 13, 2021
Linkage Assurance Aligns With Brokers For Growth

Linkage Assurance Aligns With Brokers For Growth

December 6, 2021
NCRIB Sets The Stage For Adaramola’s Tenure

NCRIB Sets The Stage For Adaramola’s Tenure

March 18, 2021
Preferred PenCom Logo

PenCom Board Crafted To Hedge Setback

February 1, 2021
PTAD Wipes 21,227 Parastatals Pensioners From Payroll

PTAD Wipes 21,227 Parastatals Pensioners From Payroll

January 31, 2021
PenCom Approves Mrs Okwuosa New Access Pension Fund Custodian MD

PenCom Board Back-To-Work Pass, Gets Tick Over

February 1, 2021
Startup Showcase: ZIPHII LTD – Revolutionising Digital Experience Platform For Businesses

Economy resilient to cyber attacks, but threat persists

0
Lloyd's of London building

Lloyd’s Of London Selects New International Chief Financial Officer

0
old mutual logo

OLD MUTUAL Appoints Permanent Head

0
AIICO donating masks

AIICO Donates Reusable Masks

0
AIICO Seeks NSE’s Nod To Conduct  Rights Issue

AIICO Seeks NSE’s Nod To Conduct Rights Issue

0
Fire Tops STI N2.7bn Claims In 2019

Fire Tops STI N2.7bn Claims In 2019

0
AIICO Pays N2.7bn In 21 Days Of Lockdown

AIICO Pays N2.7bn In 21 Days Of Lockdown

0
NAICOM Segments Recapitalisation Process Into Two Phases

NAICOM Segments Recapitalisation Process Into Two Phases

0
Leadway Calibrates Service By Claims Payment

Leadway Calibrates Service By Claims Payment

0
AIICO Head office

AIICO Releases 2020 Q1 Results

0
Startup Showcase: ZIPHII LTD – Revolutionising Digital Experience Platform For Businesses

Economy resilient to cyber attacks, but threat persists

June 6, 2023
Shipping Losses Down In 2022 But New Safety Challenges Emerge – Report

Shipping Losses Down In 2022 But New Safety Challenges Emerge – Report

June 1, 2023
GNI Trashes Report It Has Surrendered Its Annuity Business

GNI Trashes Report It Has Surrendered Its Annuity Business

May 31, 2023
FIRS: Nigeria’s Tax-To-GDP Ratio, 10.86% As At 2021

FIRS: Nigeria’s Tax-To-GDP Ratio, 10.86% As At 2021

May 31, 2023
Calls To Regulate AI Amid Concerns Over Future Risks

Calls To Regulate AI Amid Concerns Over Future Risks

May 31, 2023
Preferred PenCom Logo

PenCom Debunks Recruitment Exercise, Insists Its Misleading

May 30, 2023
AIICO Insurance Celebrates  With Less Privileged On Children’s Day

AIICO Insurance Celebrates With Less Privileged On Children’s Day

May 29, 2023
The Race For Second Edition of Heirs Life Essay Championship for Junior Secondary Students  Opens 

The Race For Second Edition of Heirs Life Essay Championship for Junior Secondary Students Opens 

May 27, 2023
Leadway Ignites children’s Reading Culture Through “Pages to Places”  Initiative

Leadway Ignites children’s Reading Culture Through “Pages to Places” Initiative

May 26, 2023
Mobile App Appeal A Long Haul That Defies Immediate Returns

Meta fined €1.2bn for breach of EU data rules

May 23, 2023

Recent News

Startup Showcase: ZIPHII LTD – Revolutionising Digital Experience Platform For Businesses

Economy resilient to cyber attacks, but threat persists

June 6, 2023
Shipping Losses Down In 2022 But New Safety Challenges Emerge – Report

Shipping Losses Down In 2022 But New Safety Challenges Emerge – Report

June 1, 2023
GNI Trashes Report It Has Surrendered Its Annuity Business

GNI Trashes Report It Has Surrendered Its Annuity Business

May 31, 2023
FIRS: Nigeria’s Tax-To-GDP Ratio, 10.86% As At 2021

FIRS: Nigeria’s Tax-To-GDP Ratio, 10.86% As At 2021

May 31, 2023
Calls To Regulate AI Amid Concerns Over Future Risks

Calls To Regulate AI Amid Concerns Over Future Risks

May 31, 2023
Preferred PenCom Logo

PenCom Debunks Recruitment Exercise, Insists Its Misleading

May 30, 2023
AIICO Insurance Celebrates  With Less Privileged On Children’s Day

AIICO Insurance Celebrates With Less Privileged On Children’s Day

May 29, 2023
The Race For Second Edition of Heirs Life Essay Championship for Junior Secondary Students  Opens 

The Race For Second Edition of Heirs Life Essay Championship for Junior Secondary Students Opens 

May 27, 2023
Leadway Ignites children’s Reading Culture Through “Pages to Places”  Initiative

Leadway Ignites children’s Reading Culture Through “Pages to Places” Initiative

May 26, 2023
Mobile App Appeal A Long Haul That Defies Immediate Returns

Meta fined €1.2bn for breach of EU data rules

May 23, 2023
Image Spin: NEM Insurance AGM

Image Spin: NEM Insurance AGM

May 18, 2023
Heirs Life CEO, Onifade, Tells Retirees To Adopt Annuity as Retirement Income

Heirs Life CEO, Onifade, Tells Retirees To Adopt Annuity as Retirement Income

May 18, 2023
2022: NEM Insurance Improves GPW By 20%, Profit By 21%, Claims Obligation Rises 38%

2022: NEM Insurance Improves GPW By 20%, Profit By 21%, Claims Obligation Rises 38%

May 18, 2023
Half Year Claims Obligation, Sovereign Trust Pays N1.6bn

Sovereign Trust Insurance Takes Growth In GPW, PAT To 20% And 9% In 2022

May 17, 2023
Business Post

We connect brands with buyers and sellers of insurance, pension and also project insurance and allied Businesses to the trending generation. We help the various public to adapt to the constant changes as it would impact, and also enable advertisers to connect, engage and target opportunities on line , in print and in person.

Browse by Category

  • Business Unlimited
  • Feature
  • Insurance
  • News
  • OIL & ENERGY
  • Pension
  • Travel

Recent News

Startup Showcase: ZIPHII LTD – Revolutionising Digital Experience Platform For Businesses

Economy resilient to cyber attacks, but threat persists

June 6, 2023
Shipping Losses Down In 2022 But New Safety Challenges Emerge – Report

Shipping Losses Down In 2022 But New Safety Challenges Emerge – Report

June 1, 2023
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 BusinessPost

No Result
View All Result
  • Home
  • Insurance
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
  • Contact Us
  • About
  • Advertise
  • Privacy & Policy

© 2023 BusinessPost

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In