Insurance M&A: main deals concluded in 2021 and 2022
| Buyer | Target company | Transaction date | Transaction amount | Transaction result |
|---|---|---|---|---|
| Berkshire Hathaway, United States | Alleghany Corporation, United States | 2022 | 11.6 billions USD | Completed |
| Brown & Brown INC | Global Risk Partners, United Kingdom | 2022 | 1.956 billion USD | Completed |
| The Carlyle Group Inc | NSM Insurance Group LLC, United States | 2022 | 1.78 billion USD | Completed |
| Independence Pet Group | Crum & Forster Pet Insurance Group, United States | 2022 | 1.4 billion USD | Completed |
| Regent Bidco, Canada | RSA Insurance Group, United Kingdom | 2021 | 9.2 billions USD | Completed |
| Covéa, France | PartnerRe, Bermuda | 2021 | 9 billions USD | Completed |
| Brookfield Asset Management, Canada | American National Group, United States | 2021 | 5.1 billions USD | Completed |
| Arthur J. Gallagher, United States | Willis Re, United Kingdom | 2021 | 3.25 billions USD | Completed |
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.
Read also | 2021, a record year for Mergers & Acquisitions
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.
