Financial institutions M&A: Sector trends - July 2017

Financial institutions M&A: Insurance

Favourable environment for insurance M&A including ongoing consolidation in the life insurance sector

Current market

  • Upward

We are seeing

  • Strategic M&A deals
  • Significant consolidation as soft market and higher capital requirements are driving potential for consolidation in general/ reinsurance sectors
  • Intra-group reorganisations

Key drivers

  • Appetite to replicate UK back- book consolidation around Europe
  • Asset availability as EU banks offload non-core assets
  • Market participants searching for growth outside primary markets
  • Financial sponsor interest in insurance assets
  • Heightened US/China inbound interest in insurance assets
  • Global Systemically Important Insurers reducing Solvency II/ regulatory capital requirements by shedding capital-intensive business lines

Trends to watch

  • Solvency II and Senior Insurance Managers Regime require a full list of those in key functions to be set out in a governance map showing clear lines of reporting and organisational responsibility. This is driving intra-group reogranisations aimed at optimising regulatory capital efficiencies, in lieu of the new risk-based Solvency II requirements, and improving corporate governance structures
  • Searching for growth and higher profit margins outside primary markets
  • Ongoing consolidation in the life sector
  • Investment in fintech

Our M&A forecast

Sustained levels of M&A across Europe driven by continued pressure on the Global Systemically Important Insurers to exit legacy and non-core portfolios and focus on capital redeployment to escape additional operational and regulatory burden of the 'SIFI' designation.


Publicly reported examples

View full image


Click here to download PDF of this chapter.


Financial institutions M&A: Sector trends


This publication is provided for your convenience and does not constitute legal advice. This publication is protected by copyright.
© 2017 White & Case LLP