This report presents the results of a comprehensive investigation of merger and acquisition (M&A) trends in the insurance sector, carried out in conjunction with Mergermarket, the global proprietary M&A intelligence provider. The survey included 750 senior-level executives within the insurance industry from across the Americas, Asia and EMEA regions. All of the firms surveyed had considered an acquisition over the last two years, with 86% having gone on to conduct at least one acquisition.

Videos:

Our experts summarise the key findings of the report in the videos below.

  • Defying gravity: Insurance M&A on the rise: Key findings globally

    Global

    This video highlights the key findings from our recent study of insurance M&A activity around the world.
    Watch video
  • Defying gravity: Insurance M&A on the rise: Key findings for EMEA

    EMEA

    Fergal O'Shea highlights the key points from our recent study for the
    EMEA region.
    Watch video
  • Defying gravity: Insurance M&A on the rise: Key findings for America

    Americas

    Jack Gibson highlights the key points
    from our recent study for the
    Americas region.
    Watch video
  • Defying gravity: Insurance M&A on the rise: Key findings for Asia Pacific

    Asia Pacific

    Richard Collis and Isabelle Kerneuzet highlight the key points from our recent study for the Asia Pacific region.
    Watch video

Steve Allan, HR M&A Advisory Services Leader for EMEA, also highlights the relevance of the HR function in successful M&A activity. Watch our video about the importance of the workforce during M&A transactional periods.

Key findings:

  • The drive for top-line growth
    Top-line growth has been the key driver of deals, as well as the most important metric in M&A pricing. It is also the prime challenge post-acquisition, with insurers focused on customer retention and satisfaction.
  • Competition and consolidation dominate
    A wave of consolidation, particularly in the US and specialty lines, has spurred a rise in the number of megadeals. Looking forward, four in five insurers expect to focus their M&A activity on core markets. However, competition for the best transactions is tough.
  • Asia is rising
    The Asian market is expected to be a centre of M&A activity over the next three years – more than half of the respondents to this survey see it as the marketplace where activity will rise most significantly.
  • Insurers seek modern distribution options and innovative technology
    Distribution is a key driver of more than a third of M&A activity, as insurers seek new routes to market and begin to reinvent distribution models such as bancassurance. Digital platforms feature strongly on insurers' wish-lists and the desire to access and secure new technologies is a key element of many transactions.
  • There is much to learn from both M&A failures and successes
    Deals that failed to complete amid challenges such as disagreement over price, competition, regulatory concern and economic volatility provide lessons for both regular and more occasional dealmakers. The evidence shows that even serial acquirers are not always sufficiently reflective about what deals actually deliver post-completion or how best to measure success.