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September 19, 2003 at 08:00 PM
NU Online News Service, Sept. 19, 2003, 3:22 p.m. EDT – Buyers probably will scoop up blocks of life insurance and small life insurers in the next few months, but they probably will not acquire the best-known life insurers, according to Andrew Kligerman, an analyst with UBS Investment Research, New York.
“We expect further consolidation of the life insurance sector, due to the importance of scale, decelerating organic growth prospects, globalization and the opportunity cost of developing needed capabilities in-house, such as distribution,” Kligerman writes in a research note.
Despite the pressure for consolidation, low share prices will keep most likely acquirers from using their stock to close big deals, Kligerman predicts.
