Asia Pacific reported a 40% increase of mergers and acquisitions operations [4] in the insurance sector in 2018 reaching a total of 59 according to the international law firm Clyde & Co.
The low rate of insurance penetration and the technological advances in Asia Pacific have fostered the development of transactions believes Joyce Chan, partner of Clyde & Co. The shareholder's equity requirements, more stringent in the Southeast Asian markets, have also stimulated mergers.
In 2018, transactions involving insurance companies worldwide increased by 9% over one year with 382 ones being identified.
America remains the most active region with 189 operations. Europe is stagnating with 122 transactions against 118 in 2017.
The report found that technology was the main driver for mergers-acquisitions. For example, the French insurer CNP Assurances has invested in the start-up of mobile payment solutions Lydia. Hartford Steam Boiler (HSB), a subsidiary of Munich Re, has acquired the American technology company Relayr INC.
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