A.M. BestTV: Insurance Merger & Acquisition Activity Aids Consolidation in Europe and Diversification in London

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- ^A.M.BestTV episode, Anthony Silverman, senior financial analyst, A.M. Best, reviews a new Best’s Special Report, which looks at insurance merger and acquisition (M&A) activity trends in Europe. Click on http://www.ambest.com/v.asp?v=europeanma517 to view the entire program.

M&A transactions in the European insurance sector totaled approximately $64 billion in 2016, which was a lower amount when compared with 2014 and 2015; however, diverse drivers for M&A activity remain.

“M&A is all about change for individual insurers that are involved in the transaction,” said Silverman. “One of the best markers for that is the movement in interest rates, which is illustrated very well by interest rates in Europe actually moving into negative territory, a completely uncharted place for them to be.”

Silverman said that any assumptions that European insurers have been engaged in M&A activity primarily by buying businesses in emerging markets would not be completely correct.

“The work that A.M. Best did on the data really would not support that natural assumption. Yes, there is European insurers’ involvement; however, it actually looks like the emerging markets’ involvement is beginning to mature and this segment has really gone beyond the flag-planting exercises of previous decades. This segment is mirroring the consolidation activity in developed markets,” he said.

To access a copy of this Best’s Special Report, titled, ““European Mergers and Acquisitions: Consolidation is the Trend,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=260468.

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^A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View ^A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.