Many P&C and life insurance CFOs will turn their collective attention from internal concerns and focus on M&A in the coming year, according to two recent Towers Watson surveys—“Life Insurance CFO M&A Survey” and “P&C Insurance CFO M&A Survey.”
Among the 20 P&C CFOs surveyed, 55 percent are considering acquiring a company, while 50 percent are interested in purchasing a block of business in the coming year. Bruce Fell, a managing director in Towers Watson’s P&C practice, said P&C CFOs feel the need to maintain strong cash positions and balance sheets in order to pursue such transactions or fend them off, as the case may be. Few P&C respondents (15 percent) said they plan to divest or merge. “CFO survey findings suggest that the difference between the demand for companies and blocks of business, and the intention of respondents to divest companies or blocks of business, or both, could flag a shortage in the future,” said Fell, who noted that over the past 12 months, 30 percent of respondents acquired or pursued a company, while 20 percent acquired or pursued a block of business.
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