KPMG: Four of the Top 5 global M&A deals in 2017, in the financial sector, were insurance related

Four of the Top 5 global M&A deals, in the financial sector in 2017, totalizing USD 28.8 billion, occurred on the insurance sector's stage. The absolute star of the season was the acquisition of the US based XL Group's by the French AXA, for a total consideration of USD 15.26 billion.

The other three top operations were: acquisition of Validus Holdings (Bermuda) by AIG (USA) for USD 5.71 billion; acquisition of "Standard Life Assurance Ltd (Maj%) Vebnet Ltd" (100%) (UK) by Phoenix Group (UK) for USD 4.52 billion and the acquisition of Liberty Life Assurance Co of Boston (100%) by Lincoln National Corp, both USA based, by USD 3.3 billion.

The number of deals for the sector overall in 2017, the M&A Predictor report of KPMG shows, was relatively flat at 3,020 compared to 3,072 in 2016, while the value of 2017 deals was USD 253 billion, 20% less than one year before. In a multiannual perspective, the decreasing trend continued both in number of deal terms and in what the total value is concerned. In comparison with the last decade's highest peak point, the 2017 total M&A value was of about a quarter of the 2008 one, while the number of operations was by about 28% lower.

The number of deals involving insurance entities was also relatively flat, but the total value rose by 128%, the main driver of this spectacular change being the XL Group / AXA deal.

KPMG expects the total number of deals in the financial sector to increase in 2018 by about 10%, as there is still a strong flow of Chinese and Japanese capital in search for acquisitions, while the interest in fintech-related deals remains hot as banks and insurers strategically seek transformational technologies to remain competitive and growing. "We expect 2018 deal activity to be very strategic, as the insurance industry - like the entire financial services sector - faces huge demand for transformation and innovation that will drive greater customer engagement and top line growth. The focus globally will be on deals that provide opportunities to transform business models, access emerging innovative technologies and modernize operating models," said Ram Menon, Global Insurance Deal Advisory Lead, KPMG in the US.

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

Insurance, a key player in building resilience

"The frequency of natural disasters is increasing, and the damage they cause will be greater as the world population becomes more urban and concentrated in areas prone to catastrophe," one of the latest analysis published by Aon under the Global Insurance Market Opportunities titles sates.


The Insurance Business in Transition to the Cyber-Physical Market

What we generically call "Cyber risk" is, in fact, a family of risks and it is worth observing if there is a commonality in the perception - thus management - of the risk in the academic, risk management, insurance and policymaking communities. The present study found that cyber breach is perceived as "critical" due in part to its own nature and, importantly, in part to the weak understanding of its impact and our preparedness.


Hail and windstorms cause multi-billion global economic loss in June; draught may be this summer's nightmare for European farmers

Overall, extreme weather events led to a multi-billion dollar economic toll, of which insurers have to pay more than USD 3 billion in claims for US losses alone, the latest edition of Aon's monthly Global Catastrophe Recap report shows. Economic losses in the Central and South-Eastern Europe amounted some hundred million USD, but weather continued also in July, adding extra costs which may also amount to significant sums.


Swiss Re's sigma: The global insurance market slowed down in 2017; emerging markets and the US strengthening economy will lead future growth

Global insurance premiums increased 1.5% in real terms1 to nearly USD 5 trillion in 2017, after rising 2.2% in 2016, the latest sigma report reads. Growth in both the life and non-life sectors slowed. According to Swiss Re Institute next years will see the life insurance segment's premiums improving driven by the strong growth in the emerging markets, especially China, while the strengthening economy of the US will lead the non-life global market's development.



IGI appoints its first Chief Technology Officer

International General Insurance Holdings Limited (IGI), the international specialist commercial insurer and reinsurer, has announced the appointment of Nasser ZAGHA to the newly-created role of Chief Technology Officer.



Reducing the risks in agriculture by using insurance means, discussed in Skopje

On November 1st, an Agricultural insurance conference took place in Skopje, Macedonia, organized by the Insurance Supervision Agency in cooperation with the Ministry of Agriculture, Forestry and Water Economy. Drawing attention to the necessity of reducing the risks in agriculture by using insurance was the event's main purpose.


IIF 2018 - Insurance in a DIGITAL WORLD

Emmanuel DJENGUE, Innovation Director, Europe - RGAX, Spain is the Keynote Speaker at IIF 2018 - Insurance in a DIGITAL WORLD Conference in Bucharest, on November 27.


See all