Insurance mergers and acquisitions have slowed amid upcoming elections and market uncertainty
Last year did not bring revival in the market of mergers and acquisitions in the insurance sector. Thus, according to analysts Clyde&Co, merger and acquisition (M&A) activity in the insurance sector worldwide decreased in 2023, reaching the lowest level in a decade.
According to the report, 346 mergers and acquisitions were completed in the global insurance market, compared to 449 in 2022.
From the report of the Internet resource UkrStrahuvannya, it is known that the largest number of M&A deals is in America, but the gap with Europe, which is in second place, narrowed significantly in the second half of the year.
“The Americas saw modest growth of 5.1%, with Europe leading the way with growth of 22.9% compared to the first half,” the report said. In the Asia-Pacific region and the Middle East, the number of M&A deals decreased by 20.7% and 33.3%, respectively.
“As the global economy continues to be affected by high inflation, it is becoming difficult for many insurance companies to find financing for transactions,” commented Peter Hodgins, partner at Clyde&Co. According to him, electoral processes around the world and market uncertainty negatively affect the total volume of transactions in 2023.