The global insurance industry has seen mergers and acquisitions (M&A), big and small, continuing at a fast pace in recent years. In 2005 and 2006, there have been approximately 350 deals worldwide and more are expected in the near future.
The reasons behind acquiring and divesting of companies or blocks of business are manifold. Companies may find it necessary to gain scale, diversify their risk or divest themselves of non-core assets, thereby increasing their profitability. However, in more than half of unsuccessful M&A, failure occured in the post-merger integration stage, when execution and speed are essential.
This issue of Insurance Review shares best practices for M&A success, achieving customer centricity and highlights current tax developments.