New research says that although the United States experienced a considerable decline in the reported value of insurance industry M&A transactions, the non-U.S. transaction value decline was even more dramatic, according Conning Research and Consulting.

“In the U.S., the value of insurance industry transactions, at about $31 billion, was the third-lowest value we have tracked since 1995,” said Stephan Christiansen, director of research at Conning Research & Consulting. “While the property/casualty sector actually saw growth in M&A values of about 20% to $16.3 billion after a strong start in the first quarter, life and managed care company values and transactions were down significantly.”

The Conning Research study, “Global Insurance Mergers & Acquisitions in 2008,” tracks and analyzes both U.S. and non-U.S. insurance industry M&A activity across property/casualty, life, health and distribution and services sectors.

“This is clearly a global phenomenon, reflecting uncertainty in conditions and a general lack of currency with which to execute transactions,” Christiansen said. “Non-U.S. M&A transaction values also were well below the previous year. Non-U.S. property-casualty came in at $14 billion, less than half of what was reported in 2007. Non-U.S. life and health, at $5.1 billion and $580 million, respectively, were both a fraction of the prior year transaction values. In both U.S. and non-U.S. regions, we have seen some activity emerging in 2009, but transactions are expected to continue at low levels until economic conditions stabilize.”

Register or login for access to this item and much more

All Digital Insurance content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access