201 M&A deals completed in global insurance industry in H1 2020

Written by Adam Cadle

17/08/2020

Two-hundred and one mergers and acquisitions (M&A) were completed in the global insurance industry in H1 2020, up from 197 in H2 2019, according to Clyde & Co.

In its Insurance Growth Report 2020, Clyde & Co said “while the outlook for the second half of the year is for a drop off in M&A activity as the effect of the pandemic is seen in the level of completed deals, the stage is set for re/insurance transactions to make a comeback in 2021”.

In the Americas, M&A activity increased from 89 to 90 in the same period. There were also rises in APAC from 31 to 38 and also in MEA which completed deals rising from seven to 15.

M&A activity declined by 20.9% in Europe from 67 in H2 2019 to 53 in H1 2020.

According to the report, there were six deals in H1 2020 valued at over $1bn and 20 in the whole of 2019. La Banque Postale’s takeover of CNP Assurances for $6.3bn was the largest deal of H1 2020.

Clyde & Co said capital raising could weigh on M&A.

“The impact of COVID-19 has accelerated the market hardening that was already underway, presenting opportunities for organic growth that could depress appetite for M&A. Capital-raising has been a feature of the post-pandemic market – reaching $16bn in H1 2020 according to Willis – with re/insurers keen to write more risk at a higher price but needing to offset losses from COVID-19 in order to do so.”

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