Conning: While P&C Distribution M&A Flew High in 2019, Insurer Acquisitions Slowed

2020 APR 24 (NewsRx) -- By a News Reporter-Staff News Editor at Mergers & Acquisitions Daily News -- In 2019, M&A activity involving acquisitions of property and casualty insurers slowed considerably from 2018, down approximately 12% compared to the prior year. That’s in stark contrast to the distribution acquisition market that sustained strong interest from consolidators as well as private equity investors throughout 2019.

“Multiple factors dampened the M&A environment for property and casualty insurers in 2019,” said Jerry Theodorou, a Director, Insurance Research at Conning. “A firming pricing climate helped fuel premium expansion lessening the need for inorganic growth, concerns over reserve adequacy kept buyers from making acquisitions, and targets have become more expensive, especially the higher quality organizations.”

The Conning study, “Global Property & Casualty Insurance M&A in 2019: Distribution Dominates” tracks and analyzes U.S. and non-U.S. property and casualty mergers and acquisitions activity for insurers, distributors, and service-related firms. Specific transactions are detailed, and trends are analyzed across all segments.

“While the property and casualty insurer M&A sector took pause, the distribution acquisition market maintained its blistering pace,” said Steve Webersen, Head of Insurance Research at Conning. “There were no large strategic broker deals in 2019, however, private equity and private equity-backed brokers remain highly active in this space. This upward trajectory in deal count is expected to persevere as buyer demand continues to be high.”

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