Rebound in European M&A activity predicted

Merger and acquisition (M&A)
activity in the European insurance market is poised for a rebound,
predicts Antonello Aquino, senior credit officer at rating agency
Moody’s Investors Service.

“Moody’s expects the sector to
witness a wave of consolidation, against the background of a
changing regulatory and competitive environment,” Aquino said.

A recovery would after a period of
comparatively low M&A activity which saw deals totalling €23bn
($29bn) in 2008 and 2009, combined. This combined total was only
half that seen in 2007.

Aquino added that a rebound in
M&A activity in the European insurance sector will be driven by
three factors:

• The evolving regulatory frameworks
  of Basel II and Solvency II, both set for full implementation in
  2012;
• The quest for growth opportunities
  to offset the otherwise lacklustre organic growth outlook in many
  European markets; and
• Restructuring of some financial
  groups in order to meet European Union competition rules.

Sign up for our daily news round-up!

Give your business an edge with our leading industry insights.

Sign up