U.S. insurance M&A deals increased 51% in Q3 2019
The insurance broker sub-sector continues to lead the industry in deal volume with fierce competition fueling activity.
Merger and acquisition (M&A) deals in the U.S. insurance sector increased by 51.2% in Q3 2019 over the previous quarter, says data from GlobalData. In total, the industry’s global deals were valued at $4.17 billion, with the U.S. market accounting for the lion’s share with 121 recorded transactions in Q3 — 4.3% more than the previous four-quarter average.
However, a report from PricewaterhouseCoopers (PwC), notes a year-over-year decrease in value from Q3 2018 when $8.1 billion in deals were announced.
Across all regions, the largest share of third-quarter deals was in the insurance broker sub-sector, says PwC, where competition among publicly-traded and private equity-backed players has fueled consolidation activity. The firm predicts that agency and broker deals will continue to lead the industry in volume as insurers seek new distribution channels for their products.
InsurTech investments also reached record-levels year-to-date in Q3. While interest in the sector is expected to continue, ”transaction structures will continue to evolve as insurers and potential targets weigh the benefits of partnering and outright M&A,” the report says.
Top deals
According to GlobalData, the five top insurance deals in the U.S. account for 100% of the $4.17 billion value recorded for the quarter. The top M&A transactions of Q3 2019 include:
- Prudential Financial’s acquisition of Assurance IQ for $3.5 billion.
- The $384.25 million acquisition of White Eagle Asset Portfolio by Jade Mountain Partners.
- The acquisition of The Hagerty Group by Markel for $212.5 million.
- Aspida Financials acquisition of Pavonia Life Insurance for $75 million.
- The acquisition of Surety Title Agency by Old Republic National Title Insurance for an undisclosed amount
Globally, insurance industry M&A deals amounted to $12.35 billion in the third quarter.
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