Alternative capital as driver of reinsurance M&A
Thursday, 08 03 2017, Category: Insurance and Reinsurance, Country: World
The search for scale, in order to achieve market relevance, continues in the global property and casualty insurance and reinsurance market. Abundant low-cost capital boosted by an all-time high of alternative capital is driving the trend for mergers & acquisitions (M&A), according to Standard & Poor’s.
However the pace of M&A activity has slowed down in 2017, which S&P puts down to a number of reasons.
“Following a slow start to 2017, we expect re/insurance M&A to remain slow through the rest of the year, due in part to high market valuations,” commented S&P Global Ratings credit analyst Taoufik Gharib.