Insurance M&A Insights: Market Opportunities for Buyers and Sellers

January 2019

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The insurance industry saw a spike in M&A activity in 2016, with deal volume reaching a peak of more than $100 billion in the U.S., almost double that of the year prior according to PitchBook data.1

While the market hasn’t nearly reached that level again, the industry has seen continued growth in M&A deal volume from 2017 through 2018—a trend the market is likely to continue in the year ahead, with opportunities for both buyers and sellers amid insurance industry evolutions.

A wide range of ongoing economic factors have contributed to a steady rise in insurance deal volume and suggest a sustained level of deal activity for the year ahead—from new and emerging business models to record levels of dry powder for private equity, and from advancements in Insurtech to a focus on specialty insurers. In the U.S. specifically, the transformation of healthcare to a value-based care system is impacting all industries that touch the health ecosystem, including insurers.

With so many dynamics in play in the already-consolidating insurance industry, buyers and sellers have individual definitions of value, whether that means broadening capabilities or divesting non-core business assets and units. Savvy insurers, agents and brokers can take steps now to understand the M&A opportunities the market presents and how to best prepare to take advantage of them.

See data tables provided by PitchBook, updated as of 11/7/2018.