Timetric reports 176% increase in insurance industry M&As in 2015

Economic doldrums are driving consolidation in the insurance market, says report

Insurance News

By Allie Sanchez

A new report from analyst firm Timetric has said that insurance firms are consolidating to cope with current economic pressures.

PR Newswire said in an update on the firm’s “Insight Report: M&A in the Global Insurance Industry” that deal values jumped 176% in 2015 to $204.5 billion from $74.2 billion in 2014.

The report said “challenging market conditions” are greatly affecting all insurance operators, brokers and service providers. Tepid premium growth and low performing investments are also pushing firms to take the M&A leap.

Timetric also noted the role of private equity in driving competition to acquire attractive targets in the insurance industry.

Further, it said that low interest rates have driven mergers and acquisitions and are affecting carriers’ overall profitability.

In addition, the report examined the effect of the underwriting cycle on the level of consolidation in the industry.


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