There were eight major insurance mergers and acquisitions in the 1st quarter of 2018. PricewaterhouseCoopers’ (PwC) report PwC Deals: U.S. Financial Services Deals Insights Q1 2018 says the total value was $26.9 billion.
In the financial industry as a whole there were 423 deals valued at $73.2 billion. Those deals were in asset and wealth management, banking, capital markets and — of course — insurance. The dollar figure is 35% higher than a year ago.
For insurance that percentage isn’t quite that high. The $26.9 billion tops last year’s 1st quarter tally of $5.7 billion. The two top deals were AXA’s acquisition of XL Group for $15.7 billion and AIG’s pick up of Validus for $5.6 billion.
PwC says we may see a big pickup in mergers and acquisitions as the year moves on and as the tax reforms passed last year begin to take effect.
In conclusion, the PwC report said, “Board members and C-suite executives at many insurance companies have been more recently focused on these legacy blocks and are giving serious consideration to divesting them. In most of these divestitures, the announcements were well received and sellers were rewarded via significant increases in their market capitalization.”
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