General Insurance Article - Global P&C and reinsurance M&A continues at steady pace

 Global merger and acquisition activity in the p&c and reinsurance sectors continued at a steady pace in the first half of 2014. Based on A.M. Best research, 35 P/C and reinsurance deals were announced globally during the first six months of 2014. The available disclosed amount for all deals was approximately $5.6bn, compared to slightly half of about $10bn announced for all of 2013.

 Similar to that of the past few years, much of the M&A activity in the P/C industry during the first half of 2014 was driven by consolidation or companies attempting to enter new markets such as Asia and Latin America. Although not included in the six-month 2014 deal count, one example of this trend was Ace’s July 4th announcement that it will be acquiring the commercial business of Itaú Seguros in Brazil, for nearly $700m making ACE one of the major players in the region.

 From the sell side, increased competition, low interest rates and lower insurance rates have prompted many companies to downsize through the divestiture of underperforming or non-core business lines.