Reinsurance M&A ‘mega deals’ an opportunity for ILS
Monday, 09 28 2015, Category: Insurance and Reinsurance, Country: World
Increased merger and acquisition (M&A) activity, deal value and deal size during the first-half of 2015, highlights a return of the ‘mega deal’, but what implications might market consolidation have for alternative reinsurance capital and ILS participants?
According to rating agency A.M. Best the average deal value during the first-half of 2015 increased by a huge 290% from the same period in 2014, to a high of $21 billion.
Average deal size grew from $279 million during H1 2014 to $725 million in 2015, a rise of 160%. While the amount of deals taking place in the property/casualty insurance and reinsurance sectors rose by 73%, totalling 76 deals.