This session will provide a high level understanding of the Form A review process and what is being seen currently in the marketplace. During 2020, pre-COVID, M&A activity in the insurance sector was at its highest rate in the past several years. We expect strong M&A activity to continue as we head into the second-half of 2021, driven by divestitures of non-core businesses, continued competition for distribution targets, the hardening of specialty P&C markets and significant levels of deployable capital.
A “lower for longer” interest rate environment will continue to put pressure on investment returns and profits, especially for carriers managing capital intensive segments or blocks of business. As these companies re-assess their core portfolios, we expect further divestitures, particularly within the life and annuity sub-sector. Transaction multiples in the brokerage space continue to be an indicator of the level of competition among private equity firms and other would-be acquirers. We expect distribution deals to dominate the sector’s announced transaction volumes in the coming year.
Although there may be time during the webinar to take questions, to take full advantage of the time allotted to this important discussion, please submit questions in advance to theacook@examresources.net
Earn Professional Education Credits and gain unique insights from subject matter experts concerning the Form A review process.