Aon Report: M&A Transactions Steadily Increasing

In a report on the mergers and acquisitions (M&A) in the global insurance industry, global professional services firm Aon found that the number of transactions has been steadily climbing since 2015. Transactions declined after the financial crisis in 2008 and didn’t recover to pre-recession levels until 2015. Since then, the number of M&A deals has grown each year.

According to the report, the economy is the biggest driver for products in the M&A marketplace. The increase in risk averse buyers, the presence of a seller’s market, and greater capacity compared to other classes of business have also favorably impacted the adoption of M&A products. Deals of more than $1 billion have increased in volume and dollar value, but deals of all size have occurred in the market.

Overall, insurance brokers are seeking new ways to add value to the transaction, MGAs are offering flexible coverage, though they occupy a crowded market, and insureds are benefiting from lower premiums and increased options. With the year soon coming to a close, it will be worth noting if the upward trend remains in place.