Mergers and acquisitions in the insurance industry are a big
deal. Insurance companies range from small, regional private
companies to large, international publicly-traded corporations with
market capitalizations in the billions of dollars. When two
companies decide to merge, or one company purchases part of another
company, transactions can reach multi-billion dollar levels.
In a fiercely competitive industry with mature and established
businesses, such transactions can be quite attractive because of
the growth they offer the acquirer (and the capital they offer the
seller). However, the insurance industry is highly-regulated,
subject to numerous legal statutes and centuries of case-law, and
sometimes faces heavy political pressure. Industry participants can
help ensure M&A success by understanding how to navigate these
challenges.
