Mergermarket and Willis Towers Watson publish a joint M&A report.
Submitted by Mergermarket
Mergermarket is pleased to present Hitting the Right Targets, published in association with Willis Towers Watson. Based on interviews with 200 senior-level executives within the insurance industry, the report explores how insurers are optimizing their capital strategies and what effect this will have on the M&A market.
Key findings include:
- The importance of optimization: 56% of insurance firms have had a capital optimization strategy in place over the last three years.
- M&A marches on: 86% say they will make at least one deal in the next three years.
- Three key challenges: Our survey reveals that increased competition (40% of respondents), increased costs (34%) and meeting regulatory capital requirements (28%) are the major obstacles facing insurers.
- Capital optimization and M&A overcome the obstacles: 68% say that gaining a strong brand will be the main driver of M&A in the next three years. 64% state that counterbalancing increasing costs was the main driver for initiating the use of a capital optimization strategy. 65% say that creation of revenue, cost and financial synergies will be the main driver of M&A in the next three years.
