Reinsurance: continued consolidation trend?

Mergers and acquisitions (M&A) will continue in the insurance and reinsurance industry, according to rating agencies Fitch Ratings, Moody's and S&P Global Ratings.

Intense competition, high levels of capital and the pursuit of profitability and growth are among incentives for market players to engage in such mergers.

The acquisition of Validus by the US insurer AIG for 5.56 billion USD, the purchase of XL Group by AXA, estimated at 15.3 billion USD and the takeover of Aspen Insurance Holdings by US investment fund Apollo for 2.6 billion USD, are among the mergers and acquisitions that have been completed since the beginning of 2018.