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Conning Study: U.S. Insurance Industry M&A Transaction Values Continue Decline

Source: Conning Research & Consulting

Posted on 21 Apr 2009

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According to a new study by Conning Research and Consulting, the U.S. saw a significant decline in the reported value of insurance industry M&A transactions, but the non-U.S. transaction value decline was even more dramatic.

“In the U.S., the value of insurance industry transactions, at about $31 billion, was the third lowest value we have tracked since 1995,” said Stephan Christiansen, director of research at Conning Research & Consulting. “While the property/casualty sector actually saw growth in M&A values of about 20 percent to $16.3 billion after a strong start in the first quarter, life and managed care company values and transactions were down significantly.”

The Conning Research study, “Global Insurance Mergers & Acquisitions in 2008,” tracks and analyzes both U.S. and non-U.S. insurance industry M&A activity across property-casualty, life, health and distribution and services sectors.

“This is clearly a global phenomenon, reflecting uncertainty in conditions and a general lack of currency with which to execute transactions. Non-U.S. M&A transaction values were also well below the previous year,” said Christiansen. “Non-U.S. property-casualty came in at $14 billion, less than half of what was reported in 2007. Non-U.S. life and health, at $5.1 billion and $580 million, respectively, were both a fraction of the prior year transaction values. In both U.S. and non-U.S. regions we have seen some activity emerging in 2009, but transactions are expected to continue at low levels until economic conditions stabilize.”

“Global Insurance Mergers & Acquisitions in 2008” is available for purchase from Conning Research & Consulting by calling (888) 707-1177 or by visiting the company’s website at