Insurer M&A activity drops significantly

Written by Adam Cadle

11/08/2023

Insurer M&A activity has dropped significantly after reaching a 10-year high last year, according to Clyde & Co’s latest Insurance Growth Report.

One hundred and seventy-one completed deals were completed worldwide in H1 2023, down from 207 in H2 2022. Activity was down in all regions except the Middle East and Africa which saw a 12.5% rise between H2 2022 and H1 2023. Deals in the Americas fell from 104 to 79, and from 60 to 47 in Europe. In the APAC region, deals fell from 33 to 29.

The number of mega deals also dropped sharply, with only one transaction in H1 2023 valued at over US$1bn. There were 19 in the whole of 2022.

“Given that growth in M&A activity typically lags behind improvements in underlying market conditions by anywhere from eight to 12 months, these developments are unsurprising,” Clyde & Co stated.

“However, we anticipate that the volume of transactions will start to rise again towards the end of 2023 as insurance businesses acclimatise to the new operating environment, with the broker segment leading the way. There are certainly opportunities for savvy businesses able to respond rapidly to a positive shift in markets.”

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