PriyaPatel
TLDR:
Key points:
- Lowest number of insurance carrier M&A deals completed in 15 years in the first half of 2024.
- Factors contributing to decrease in deal activity include surge in inflation, high interest rates, and sellers’ high pricing expectations.
Summary:
In the first half of 2024, the insurance carrier M&A landscape saw the lowest number of deals completed in 15 years, with only 103 deals finalized. This decline in deal activity can be attributed to a combination of factors, including a surge in inflation, high interest rates, and sellers’ high pricing expectations. Cash-rich carriers have been retaining capital due to high interest rates, and sellers have been demanding a premium for the integration of tech systems.
However, there are signs that the market may be on the brink of a revival. The slow pace of deal activity may be coming to an end, with larger scale transactions expected to drive the insurance M&A market for the remainder of 2024 and into 2025. Carriers are looking to take on books or businesses that span multiple countries in one transaction. Regional analyses show that M&A activity is expected to pick up in the UK, Europe, and other regions as well.
Overall, the insurance M&A market is experiencing a period of transition, with the focus shifting towards securing talent and completing larger scale transactions. While the global slowdown in deal activity has been felt across various regions, there are indications that conditions are improving and a revival may be on the horizon.
