Friday, 03 March 2023 18:28

Insurance mergers and acquisitions reach highest level in 10 years

Written by Evelyn Alas

Last year, 449 mergers and acquisitions (M&A) were completed worldwide in the insurance sector, up from 418 the previous year. This is the highest number in the last decade, according to a report by global law firm Clyde & Co.

If anything, the highest concentration of deals occurred in the first half of the year with 242, losing some pace to complete 207 in the second half, due to economic and inflationary pressures affecting investor confidence.

Eva-Maria Barbosa, president of Clyde & Co's Corporate and Advisory Group, details that "despite the return of inflation and central bank measures to restrict liquidity, deals that had been postponed during the pandemic continued to come to market in 2022, maintaining the upturn in trading that began the previous year".

On trading forecasts, he estimates that "underlying trends point to a climate of uncertainty among investors. Dealmakers in the Americas and Europe are showing a greater sense of caution as they shift to wait-and-see mode in the face of market uncertainty, which is likely to translate into a lag in overall transaction volume".

The Americas was the most active mergers and acquisitions region in 2022 with 236 deals, up 5% from 2021. Europe saw the smallest year-over-year increase, with 127 deals, up from 125 in the previous year.


Translated by: A.M