Global insurance merger and acquisition (M&A) activity in 2013 within the property/casualty, life/health and reinsurance sectors was driven largely by industry consolidation, A.M. Best research has found.
This drive is thought to be a result of many companies that have been looking to divest their noncore assets post-financial crisis.
The number of 2013 deals in the property/casualty and reinsurance sectors fell roughly 25 percent compared with 2012, while the life/health industry saw a 15 percent rise in activity in 2013 over the previous year.
While consolidation is an M&A trend running through all these sectors, private equity also had a pronounced influence on dealings, as firms have been focused on increasing their participation in the insurance sectors.
In addition, interest in emerging markets, as a means to diversify globally and to combat low interest rates, has increasingly become a driver of M&A activity as well.
