H1 2023: Insurance M&A transactions in decline

A study by Clyde & Co indicates that during the first six months of 2023, 171 mergers and acquisitions (M&A) were carried out by the insurance market. This represents a 17.4% decline compared to the second half of 2022, and a 29.3% drop compared to the first half of 2022.

The slowdown in activity was most pronounced in the Americas, where 79 transactions were recorded, marking a 24% decrease compared to the last two quarters of 2022.

The Middle East and Africa were the only regions to witness a rise in M&A activity, from 8 transactions as at 31 December 2022 to 9 as at 30 June 2023.

The downturn in transactions is attributable to a number of factors, including the lack of interest in insurtech on the part of insurers in certain regions, and the ever increasing number of cyber-attacks in the sector.

M&A activity trends by region