Deloitte heralds new dawn for insurance M&A

A flurry of activity by insurance companies to rebuild internal M&A capabilities may herald an uptick in M&A during 2013, said Deloitte in a 2013 report.

Though 2012 saw an approximate 20 percent decrease in the number of insurance industry M&A deals versus 2011, Deloitte predicted that organisations will seek to expand market share, distribution capabilities, product/service offerings and economies of scale in the face of limited organic growth opportunities in the coming year.

The report singled out Property & Casualty deal activity as one segment that had decreased in 2012 compared to 2011.

"While deal volume slowed toward the end of 2012 as P&C companies sought to determine their exposure from Superstorm Sandy, it is expected to pick up in 2013-albeit sporadically-as Sandy's impacts are absorbed and companies desiring to improve their performance or revenue expectations push for specialty line acquisitions that hold value better," said the report.