London partner Andrea Best and New York partner Parimah Hassouri were quoted in a May 16, 2019, Bermuda Reinsurance article titled “More Deals on the Horizon.” The article posits that after a prolonged “feeding frenzy” of merger and acquisition activity things seem to have quieted down.
Given the extent of consolidation that has been seen in the recent past, Andrea and Parimah do not expect that 2019 will see as many deals the size of the AXA/XL, Validus/AIG, Cigna/AETNA and Marsh/JLT transactions. However, they both believe that M&A will continue, but probably on a smaller scale. “For example, the market might see more of a focus on joint ventures, or investments in InsurTech and other partnerships, and smaller strategic acquisitions.” They point out that factors such as the UK’s departure from the EU also play a role, and “it is possible that there might be some further transactions when there is less uncertainty in the UK/European economy.”
Read “More Deals on the Horizon?”