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The insurer's M&A activity increases: Deloitte



Insurance mergers and acquisitions will continue to accelerate for most sectors in 2021, with the number of deals increasing by 18% to date, according to a report released on Monday by Deloitte Consulting LLP.

Lower interest rates continue to create debt financing opportunities as predicted and "are here to take in terms of insurance M & A", Deloitte said in the mid-year outlook.

Brokerage transactions continue to be strong in terms of average business size and number of transactions, according to the update.

Nearly 60% of brokerage business volume in the first half of 2021 was driven by private equity investors and private equity-backed aggregator platforms, Deloitte said. , with 1

8 offers so far, compared to 24 during the same period in 2020. This is probably due to the current interest rate hardening environment more than any other factor, Deloitte said.

Life and annuity transactions also increased from f I have 17 years so far, it said.

The total business value is about four times higher than in the first half of 2020 and the entire calendar year 2020, which is run by some large businesses, Deloitte said. The average business value so far is also higher than 2020, it said.

While previously private equity investors mainly invested in brokerage, several have shown that they have life and annuity platforms that drive assets under management and fee-based income can feed M&A operations, Deloitte said.

"This is likely to drive this space at a pace we have not seen before, although it is unclear how this could change if interest rates rise," according to the update.

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