AM BestTV: Insurers in Western Europe Look to Mergers and Acquisitions for Growth, Says AM Best Managing Director

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- In this episode of ^AMBestTV, Greg Carter, managing director, analytics, AM Best, said most rated insurers in Western Europe carry a stable outlook, but face challenges to grow faster than the mature markets they serve. Click on http://www.ambest.com/v.asp?v=westerneurope319 to view the entire program.

Carter highlighted what is driving the merger and acquisition (M&A) activity.

“The M&A activity is a reflection of the maturity of the market,” said Carter. “Many of the companies have operated through a stable period, as they have grown their balance sheets and are now regulated to a high degree of solvency. Many of them have excess capital over and above what they would require to run their business at an optimum level. In those situations, companies will look at ways to utilize that capital more efficiently. With limited growth prospects for the marketplace, M&A is a very logical starting point.”

Carter believes that in the future, Environmental, Social and Governance (ESG) issues are going to play an increasingly important role in the market. “ESG policies are clearly high on the agenda for companies today,” he said. “AM Best expects these policies to influence how companies manage and present themselves going forward.”

To access a copy of this special report, titled, “Consolidation Trends to Continue as Western European Insurers Seek Growth,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=282467.

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^AMBestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View ^AMBestTV episodes at http://www.ambest.tv.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.