The value of transaction mergers and acquisitions involving buyers or targets in the U.S. or Bermuda for the full year 2020 should exceed the business value for 2019, while M&A transactions for brokers slowed, according to a report Thursday from S&P Global Market Intelligence.
In the first nine months of 2020, the total value of insurer contracts was $ 13.20 billion, compared to $ 6.36 billion in 2019, according to the report.
However, the deal activity in the fourth quarter of 2019 totaling $ 13.81 billion was the second highest amount for that period in the last decade.
Nevertheless, S&P sees the chance for 2020's total for the best for 201
'Development as Arch Capital Group Ltd .: $ 538.1 million agreement to acquire the remaining outstanding shares in Watford Holdings Ltd., reports on MetLife Inc's potential sale of its real estate and damage business at a reported asking price of between $ 3 billion and $ 4 billion and Assurant Inc.'s launch of a strategic review of the predetermined deal taken out by American Memorial Life Insurance Co. and Union Security Insurance Co. gives reason for optimism that the full year may exceed 2019's $ 20.17 billion profit, says S&P.
Broker M&A slowed but can pick up again, said S&P. Brokerage agreements decreased by 15.3% in the first nine months of 2020 to $ 426 million, data from the report show.
Offers involving US brokers and agency targets have declined from "record speeds" over the past two years, but may pick up speed after the US presidential election, S&P said.
"… potential sellers will push to close deals in late December due to concerns about the potential negative effects on net sales revenue from long-term capital gains tax proposals issued by Democratic presidential candidate Joe Biden," says S&P. 
Statistics exclude targets in the managed healthcare sector and completed transactions, according to the report. Catalog