2016: Global Insurer Mergers & Acquisitions in 2015 - The Big Bang


Price : $1,750.00



This Strategic Study analyzes transactions by insurer sector and provides comparisons with prior years, across sectors and among geographic regions for the record-breaking year that was 2015. M&A activity provides one of the clearest indicators of insurers’ business strategies, and we identify and explore trends that have occurred, are emerging, or are expected to emerge within property-casualty, life-annuity, and health/managed care.



1. Introduction 



2. Executive Summary 



3. Overview of Insurer Mergers & Acquisitions in 2015 



  • Main Themes of 2015 Insurer M&A


  • Key Drivers of Insurance M&A in 2015


  • Non-U.S. Insurance Mergers & Acquisitions


  • Runoff and Distress


  • Outlook for 2016


  • Summary




4. Property-Casualty Insurance M&A in 2015 



  • Overview


  • Largest U.S. Property-Casualty Mergers & Acquisitions in 2015


  • Themes of 2015 Property-Casualty M&A


  • Key Drivers of U.S. Property-Casualty M&A in 2015


  • Global Property-Casualty M&A in 2015


  • Outlook for 2016


  • Summary




5. Life-Annuity Insurance M&A in 2015 



  • Overview


  • Largest Life-Annuity Mergers & Acquisitions in 2015


  • Themes of 2015 Life-Annuity M&A


  • Key Drivers of U.S. Life-Annuity M&A


  • Non-U.S. Life-Annuity M&A Review


  • Key Drivers of Non-U.S. Life-Annuity M&A in 2015


  • Outlook for 2016


  • Summary




6. Health Insurance/Managed Care Insurance M&A in 2015 



  • Overview


  • Largest Health/Managed Care Mergers & Acquisitions in 2015


  • Themes of 2015 Health Insurance/Managed Care M&A


  • Key Drivers of Health Insurance/Managed Care M&A in 2015


  • Outlook for 2016


  • Summary




Appendix 



A. Methodology and Criteria for Inclusion in Mergers & Acquisitions Database



B. Series of Recurring Mergers & Acquisitions Studies



C. Historical Summary Data



D. 2015 Mergers & Acquisitions by Sector




Introduction

The value of global insurer M&A (merger and acquisition) activity reached new heights in 2015. The aggregate $194.9 billion in announced transactions in the property-casualty, life, and health sectors was quadruple the value of global underwriting transactions in 2014. The number of transactions was relatively unchanged at 183. The high aggregate value of 2015 insurer M&A was driven by a number of exceptionally large transformative deals announced in the year in the property-casualty and health/managed care sectors.

 The character of 2015 insurer M&A also changed fundamentally from recent years. Whereas much of the insurance M&A activity following the financial crisis was undertaken by financial buyers or characterized by bolt-on acquisitions or seller-driven strategies to prune underperforming units, the significant M&A transactions in 2015 were largely by strategic buyers seeking scale and diversification.
 
Numerous factors converged in 2015 to stimulate a veritable big bang of large-scale M&A activity. These included capital buildup at insurers, low interest rates, anemic economic and exposure growth, a softening property-casualty market, regulatory developments, and interest from Asian buyers. This study explores how these factors drove 24 underwriter transactions in 2015 each valued at $1 billion or more, nearly triple the nine deals of $1 billion or more announced in 2014.
 
In addition to creating formidable entities with large scale, the landmark consolidations that took place in 2015 also stimulated companies that did not enter the M&A arena to review how their relevance and competitive advantage could be affected in the new market landscape.
 
This study analyzes trends and drivers responsible for the ongoing insurance M&A wave, as well as individual transactions, to identify patterns pointing to the future landscape of the insurance industry. The insurance industry is in the midst of rapid innovation and transformation in response to pressures created by technology developments affecting insurance exposures and buyer demand. Because M&A is a leading indicator of the evolution of markets, it is important to understand its patterns and directions.
 
In this study, Conning’s 26th annual in-depth listing and analysis of insurance mergers and acquisitions, we present data and analysis of merger activity in the property-casualty, life-annuity, and health insurance/managed care sectors announced in 2015 and early 2016. A separate Conning study focuses on the insurance distribution and insurance services sectors. The appendices include the methodology and criteria for inclusion of transactions in our database, as well as a detailed listing of 2015 transactions by sector.