M&A Activity Showed Healthy Increase in 2011

NU Online News Service, March 28, 3:04 p.m. EDT

Property and casualty insurance company mergers and acquisitions activity increased in 2011 by 28 percent over the previous year, according to a report released by Conning Research & Consulting.

The report, “Global Mergers & Acquisitions in 2011: A Shift to Strategic Transactions,” reviews the M&A environment for last year saying that overall U.S. M&A activity increased by 36 percent, while outside the United States, activity remained unchanged from the prior year.

Focusing on U.S. P&C insurance M&A activity, the primary interest was in niche companies and specialty lines. In general, acquisitions were apparently done for strategic reasons.

With investment sources producing low results, more attention was paid to underwriting results, making companies with low combined ratios attractive candidates.

The focus was on the middle- and low-middle-market segments, where deals ranged from $100 million to $1 billion, Conning says.

The number of P&C transactions rose from 60 in 2010 to 77 in 2011, the report says.

For all of 2011 there were 592 U.S. insurance transactions announced, covering both P&C and life and health, the highest ever recorded, says Conning.

Comments

Resource Center

View All »

Complimentary Case Study: Helping achieve your financial goals By:...

Find out how a Special Investigation Unit used TLOxp to save the company money and...

Do Your Clients Hold The Right CDL License?

Learn about the various classes of CDL Licenses and the industries that are impacted by...

Integrated Content & Communications: A Key Business Issue For Insurers

Insurers are renewing their focus on top line growth, and many are learning that growth...

High Risk Insurance Coverage in the E&S Market

Experts discuss market conditions, trends and projected growth in a rapidly changing niche.

Top E-Signature Security Requirements

This white paper covers the most important security features to look for when evaluating e-signatures...

EPLI Programs Crafted Just For Your Clients

Bring us your restaurant clients, associations and other groups and we’ll help you win more...

Is It Time To Step Up And Own An Agency?

Download this eBook for insight on how to determine if owning an agency is right...

Claims - The Good The Bad And The Ugly

Fraudulent claims cost the industry and the public thousands of dollars in losses. This article...

Leveraging BI for Improved Claims Performance and Results

If claims organizations do not avail themselves of the latest business intelligence (BI) tools, they...

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

Tech Digest eNewsletter

Technology related insights for insurance professionals including key developments, solution providers and news briefs from the carrier front – FREE. Sign Up Now!

Advertisement. Closing in 15 seconds.