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The New Deal: Driving insurance transformation with strategy-aligned M&A

The New Deal: Driving insurance transformation with strategy-aligned M&A

15 March 2017

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The insurance industry is facing disruption in a variety of forms. New technologies, new competitors, new markets, new regulations, and changing consumer behaviors all offer tremendous opportunities and significant risk to the industry’s legacy business model. This has caused participants to reevaluate their business portfolio and change their strategic objectives, leading experts to conclude that the global insurance industry will soon face a wave of M&A.

To find out how this shift towards strategy-aligned M&A is influencing deal activity in the insurance industry, KPMG commissioned Mergermarket to interview 200 insurance M&A decision-makers across all segments and regions.

Key findings of this report include:

  • 84% of respondents plan to conduct 1-3 acquisitions in 2017, while 94% are looking to plan at least one divestiture.
  • Most insurers (62%) are either active or setting up corporate venture capabilities, with 26% of those with VC activities having more than US$1bn in allocated funding.
  • Transforming business and operating models are the main motivator for deals: 40% of insurance dealmakers plan to do so by way of partnerships and alliances, while 33% plan to undertake M&A.
  • Respondents believe that the top two regions that present the most acquisition opportunities for their company in 2017 are Asia-Pacific and North America.