There were 242 completed mergers and acquisitions in the global insurance industry in the first half of 2022, according to a report on Thursday by law firm Clyde & Co. LLP.
The 9.5% increase from the second half of 2021 represents the highest growth rate in 10 years for such deals, the report said. There were 197 deals in the first half of 2021.
The 132 deals in the Americas, up from 108 in the second half of 2021, were the highest number of transactions there in 10 years.
The number of deals in Europe in the first half of 2022 fell slightly to 67 from 74 in the second half of 2021, while the Middle East and Africa saw 16 deals compared to 12 in the second half of last year. Asia Pacific increased slightly to 27 deals compared to 24 deals in the second half of 2021, the report said.
There were 13 deals valued at over $1 billion in the first half of 2022 compared to 14 in the previous six-month period.
Insurers remain focused on growth opportunities despite strong economic pressures, including inflation, rising energy costs and looming recession, says Eva-Maria Barbosa, partner at Clyde & Co. in Munich, in the report.
“Several factors are driving business. Rising interest rates promise better investment returns for long-term companies, while helping insurers rebalance portfolios. Private equity firms and asset managers remain keen to explore either entry into the insurance market or expansion of existing footprints. And flagging insurtech valuations mean that acquisitions are increasingly attractive to both PE investors and traditional operators looking to increase technological capabilities,” she said.
Clyde & Co. The Insurance Growth Report is based on data from Thomson Reuters, Alacra and Refinitiv for completed M&A in the global insurance industry for the period 2009 to June 30, 2022, according to the report.