Insurance M&A: main deals concluded in 2021 and 2022

BuyerTarget companyTransaction dateTransaction amountTransaction result
Berkshire Hathaway, United StatesAlleghany Corporation, United States202211.6 billions USDCompleted
Brown & Brown INCGlobal Risk Partners, United Kingdom20221.956 billion USDCompleted
The Carlyle Group IncNSM Insurance Group LLC, United States20221.78 billion USDCompleted
Independence Pet GroupCrum & Forster Pet Insurance Group, United States20221.4 billion USDCompleted
Regent Bidco, CanadaRSA Insurance Group, United Kingdom20219.2 billions USDCompleted
Covéa, FrancePartnerRe, Bermuda20219 billions USDCompleted
Brookfield Asset Management, CanadaAmerican National Group, United States20215.1 billions USDCompleted
Arthur J. Gallagher, United StatesWillis Re, United Kingdom20213.25 billions USDCompleted

Market players are also attracted by the acquisition of small insurance entities with the aim of consolidating their core offer. The run-off market remained very active in the US, Europe and, to a lesser extent, the Middle East.

Insurance M&A: 2022 trends

At the beginning of 2022, the M&A market seemed to be building on the momentum of 2021. The continuation of a favorable environment should logically lead to the same results: significant resources, high level of available capital, good financial health, still low debt costs, willingness of strategic players to accelerate their transformation and search for new growth levers, …

Unfortunately, the outbreak of a serious geopolitical crisis in February 2022 has strained the entire global economic sphere. As a result, the M&A market sustained a sharp 29% drop in total deal value in the first quarter of 2022.

According to Dealogic's data, M&A transactions account for a volume of 1 010 billion USD compared to 1 430 billion USD, at the end of March 2021. The decline is due to market volatility related to Russia's invasion of Ukraine and disruption of supply chains.

Notwithstanding this difficult environment, specialists expect M&A activity in the insurance market to keep up the momentum in 2022, with the number of transactions expected to exceed 420 worldwide.

The MENA region is poised to undergo a boom in the M&A market. The GCC countries, which have grown more active than before, will strengthen their regional presence while more mature insurers are still looking for targets and opportunities to expand their presence.

The pandemic, the driver of innovation

The global health crisis has accelerated innovation in the insurance market. As a result, insurance companies are among the most innovative companies, willing to buy, finance or partner with leading technology entities and startups to bring innovative products to market and gain a competitive advantage.

Expansion and development are now achieved through agreements with digital and innovative platforms. Such partnerships allow insurers to tap into new technologies such as automation, data analysis and modeling.

Note the remarkable growth of U.S. insurtechs, which are developing at a steady pace, with some of these firms having reached maturity, allowing them to plan acquisitions, increase their market share and transform themselves into full-fledged insurance companies.

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