Conning Research: Global Insurance Industry Acquisitions Driven by Non-U.S. Insurers

747 transactions reported in 2007

(Hartford, CT) May 28, 2008 – U.S. insurers concentrated their M&A activities domestically in 2007, especially in the property-casualty and health insurance and managed care sectors, and were much less active on the global stage, according to a new study by Conning Research and Consulting.

“Global insurance industry acquisitions in 2007 were driven by non-U.S. insurers – primarily Western European firms – who clearly see value in this market,” said Sherry Manetta, director at Conning Research & Consulting. “In fact, only 20 percent of primary and reinsurer transactions involved a U.S. entity at all. Those few U.S. insurers who were active internationally made acquisitions to build share in existing markets rather than entering new countries.”

The Conning Research study, “Global Insurance Mergers & Acquisitions: U.S. Insurers on the Sidelines”analyzes Conning’s proprietary database of transactions and presents trends across industry segments and regions. Coverage includes property-casualty, life-annuity, health insurance and managed care, and distribution and service firm transactions.

“We expect that U.S. firms will continue to be domestically focused in their acquisitions, and will be attractive acquisition targets in 2008, due in part to the soft dollar and, in the property-casualty sector, to the softening underwriting market,” said Stephan Christiansen, director of research at Conning. “In addition to these factors, U.S. insurance company stock prices are substantially off their highs of a year ago, which makes it economical for an acquirer to pay a premium over a stock’s market price.”

“Global Insurance Mergers & Acquisitions: U.S. Insurers on the Sidelines” is available for purchase from Conning Research & Consulting, Inc., by calling (888) 707-1177 or by visiting the company’s web site at

About Conning Research & Consulting

Conning Research & Consulting provides insurance industry analysis to insurers and industry stakeholders. Its published research includes market coverage of 30 segments of the industry in addition to industry forecasting and identification and analysis of major strategic issues. The Conning name has represented excellence in independent insurance industry research for 50 years. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth insights and analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.