2017 A Record-Setting Year for Insurance Distribution and Services Mergers & Acquisitions

Hartford, CT (Mar. 22, 2018) – While 2017 global mergers and acquisitions transactions for insurance distribution set new records, insurance services were down from prior year despite a strong technology focus, according to a new study by Conning.

“2017 global insurance distribution merger and acquisition transaction counts eclipsed both the prior year and the previous five-year average,” said Matt Sternat, Vice President, Insurance Research at Conning. “Despite all-time highs in private valuations, retail agent and broker acquisitions still dominate, and private equity’s strong support of distribution acquisitions continues. The desire for scale and efficiency in an expanding economy, coupled with a large supply of sellers and relatively low-cost debt, continue to drive these high volumes of transactions.”

The Conning study, Global Insurance Distribution & Services Mergers & Acquisitions in 2017: Property-Casualty Blazing the Trail; Status Quo for Life, Health, Services tracks and analyzes both U.S. and non-U.S. insurance industry mergers and acquisitions activity across distribution and services sectors. Specific transactions are detailed, and trends are analyzed across both sectors.

“Global insurance services transactions cooled slightly in 2017,” said Steve Webersen, Head of Insurance Research at Conning. “Technology transactions led the field, followed by claims and third-party administrators, pharmacy benefits managers, and risk management. More than two-thirds of the insurance services acquisitions were led by other insurance services companies, with financial services firms, mostly private equity, the next strongest buyer segment. As the global industry increases its focus and support for InsurTech initiatives and outsourced partnerships, we expect the services sector transaction count to remain strong for some time to come.”

Global Insurance Distribution & Services Mergers & Acquisitions in 2017: Property-Casualty Blazing the Trail; Status Quo for Life, Health, Services is available for purchase from Conning by calling (888) 707-1177 or by visiting  www.conningresearch.com.

About Conning

Conning (www.conning.com) is a leading global investment management firm with approximately $121 billion in global assets under management as of December 31, 2017.* With a long history of serving the insurance industry, Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, award-winning risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.

*As of December 31, 2017, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited, and Cathay Securities Investment Trust Co., Ltd. (“SITE”). SITE reports internally into Conning Asia Pacific Limited, but is a separate legal entity under Cathay Financial Holding Co., Ltd. which is the ultimate controlling parent of all Conning entities. (C# 6788422)

SOURCE: Conning

Tags: ,