Property-casualty mergers are expected to drastically increase in the coming years, according to a recent survey of North American P&C insurance CFOs by Towers Watson.
More than half of CFOs polled said they were interested in purchasing a block of business in 2013 and 55 percent said they were interested in acquiring a company. Only 15 percent shared plans to divest or merge.
Companies hoping for inorganic growth cited a variety of motives. Nearly half are seeking expansion into attractive geographies and markets, 42 percent are working toward economies of scale or scope and 32 percent want to increase market presence.
Next year, about 45 percent of CFOs surveyed planned to expand their presence in the U.S., 15 percent in Asia, 10 percent in Canada, 10 percent in Latin America and 5 percent in Africa.
Conclusions of the survey warn companies interested in inorganic growth to be ready for strong acquisition demand and short supply in the immediate future.