Global insurance M&A activity increases in H1: Clyde & Co.
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There were 242 completed mergers and acquisitions in the global insurance industry during the first half of 2022, according to a report Thursday from law firm Clyde & Co. LLP.
The 9.5% increase from the second half of 2021 represents the highest growth rate in 10 years for such deals, the report said. There were 197 deals in the first half of 2021.
The 132 deals in the Americas, up from 108 in H2 2021, was the highest number of transactions there in 10 years.
The number of deals in Europe during first-half 2022 dropped slightly to 67 from 74 in the second half of 2021, while the Middle East and Africa saw 16 deals compared with 12 in the second half of last year. Asia Pacific increased slightly to 27 deals compared with 24 deals in the second half of 2021, the report said.
There were 13 deals valued at over $1 billion during first-half 2022 compared with 14 in the previous six-month period.
Insurers remain focused on growth opportunities in spite of stark economic pressures including inflation, rising energy costs and looming recession, Eva-Maria Barbosa, partner at Clyde & Co. in Munich, said in the report.
“Several factors are driving deals. Rising interest rates promise better investment returns for long-duration businesses, while helping insurers to rebalance portfolios. Private equity firms and asset managers are still keen to explore either entry into the insurance market or expansion of existing footprints. And flagging insurtech valuations mean acquisitions are increasingly attractive to both PE investors and traditional carriers seeking to increase technological capabilities,” she said.
The Clyde & Co. Insurance Growth Report is based on data by Thomson Reuters, Alacra and Refinitiv for completed M&A in the global insurance industry for the period 2009 to June 30, 2022, the report said.
