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Industry Updates
Mergers and Acquisitions

The number of mergers and acquisitions in the global insurance industry continued to increase in the first half of 2018, according to Clyde & Co.
  • September 2018
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Completed M&A deals worldwide reached 186 in January to June period this year, up from 180 in the second half of 2017. Clyde &Co said this marks the second consecutive six-month period of modest increases in transactions since the low point in first half last year that followed two years of decline.

M&A activity in the Americas led the global growth, with 97 deals as of the end of June, from 90 in the preceding six months, thanks to stronger economic fundamentals in the United States, said Vikram Sidhu, partner at Clyde &Co in New York.

“In the U.S., positive factors such as strong economic growth and lower federal corporate tax rates as well as negative factors such as relentless competition and pricing pressure in many lines continue to motivate M&A deals in the insurance sector,” Sidhu said in a statement, adding he expects the same factors to sustain deal activity in the next 12 months.

Deals in the Americas also reflected a shift in strategy among Bermuda-based reinsurers, with transactions involving Bermudian acquirers in the first half of the year as well as announcements of takeovers of Bermudian reinsurers such as Axa's move on XL Catlin and American International Group's tie-up with Validus.

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