Filed Under:Agent Broker, E&S/Specialty Business

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.

Featured Video

Most Recent Videos

Video Library ››

Top Story

20 home insurance companies ranked highest for customer satisfaction

The J.D. Power 2016 U.S. Home Insurance Study provides a comprehensive look at customer satisfaction with homeowners' insurance coverage. One company ranks highest for the 15th consecutive year.

Top Story

7 ways to prevent Halloween-related claims

Fire, distracted driving, vandalism and theft are some of the top risks on Halloween. Here are some safety tips for insureds from Travelers.

More Resources


eNewsletter Sign Up

Specialty Markets Insight eNewsletter

Receive updates and analyses on hard to place and challenging coverages. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.