The continuing soft market will have an impact on merger and acquisition activity among insurers, but ultimately, deals are made based on the specific needs of individual buyers and sellers, industry representatives say.

In softer markets, if companies feel that they cannot grow organically, many may look to expand through acquisitions, said Stephen Sills, president and chief executive officer of Darwin Professional Underwriters, which agreed to be purchased by Bermuda-based Allied World Assurance Company Holdings in late June.

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