2014 Insurance M&A outlook
Momentum continues to build
For the past few years, insurance companies have spent a considerable amount of energy improving their bottom lines by cutting costs. Now many are turning more of their attention to generating topline profitable growth, both organically and inorganically. With industry observers expressing cautious optimism about the year ahead, Deloitte examines the current state of global insurance industry M&A activity and the top issues facing companies in 2014.
Top issues for insurance M&A in 2014
Entering 2014, momentum continues to build for increased insurance company M&A. Leading insurers are conducting strategic business reviews to assess their current product, customer service and go-to-market capabilities and their core and non-core markets; figuring out where they want to (and don't want to) grow; and making deliberate decisions on how to achieve their objectives—including the increased role M&A might play. Those companies that have decided to utilize M&A as a growth driver are strengthening their business development function, taking the pulse of the market and actively communicating their desire for acquisitions.
In this report, Deloitte examines the current state of global insurance M&A activity and the top issues facing companies in 2014 including:
- Economic and market activity
- Regulatory uncertainty
- Investment activity by private equity firms
- Capital management
- Buyer/seller expectations
- M&A capability building by strategic buyers