The global insurance industry’s outlook is improving. The mature economies of Europe and North America are moving towards recovery, while the emerging markets of Asia and Latin America continue to grow.
A pick-up in global premiums is forecast, but the industry should not expect a return to the old ways. Insurers are operating in a world where the goal of long-term growth seems to be getting further away. Instead insurers face a range of obstacles including persistently low investment yields, tightening regulation and overcapacity in many markets.
As insurers adapt their business models to this new environment, the strategic importance of M&A will only increase. However we do not expect transaction volumes to recover along the same lines as during the last decade. Instead, we predict the next few years will see a quiet revolution in global insurance M&A.