Mergers and acquisitions in the insurance industry rose by 176 percent between 2014 and 2015, the transactions driven by a host of factors, including a long-standing drag on the industry: continuing low interest rates.
Timetric discloses this finding in its “Insight Report: M&A in the Global Insurance Industry.” The report discusses in detail the trends and drivers which affect M&A activity in the global insurance industry. The report attributes much of the M&A activity to the business environment, including continuing low interest rates, regulatory developments, changing customer preferences, the availability of surplus capital, and technological advances.
An increasing number of high-value deals in the insurance industry boosted insurance deal values to US$204.5 billion in 2015 from US$74.2 billion in 2014. The emergence of M&A waves in the insurance industry has contributed significantly to the global M&A environment, the report notes.
The study adds that challenging economic and market conditions are impacting all insurance operators, including brokers and service providers. depressed premium growth and low investment returns are also forcing insurers to engage in M&A activity.