After a four-year slide, insurance deal-making in Europe saw an
uptick in 2014 with 134 transactions completed, up from 114 in
2013, an 18% increase. Furthermore, 2015 has started with a bang in
the M&A market. In addition to a couple of mega-deals involving
US and Bermudan entities, more significantly from a European
perspective, US insurer XL announced that it had sealed a deal to
acquire UK-listed rival Catlin for GBP 2.79 billion, the
largest-ever takeover of a Lloyd's underwriter to create the
world's eighth largest group in the reinsurance industry. This
may be a sign of more to come.
However, the insurance M&A market in Europe would appear to
have arrived at a crossroads. There have been signs for some time
that it has been coming back to life. The second half of 2013 saw a
marginal pickup in activity, despite the market still being beset
with a number of different uncertainties around issues such as
regulation (e.g. the timing and form of Solvency II) and
