J.P. Morgan leads Q3 insurance underwriter M&A league table

J.P. Morgan Securities LLC stood in the top spot on S&P Global Market Intelligence's insurance underwriter M&A league table at the end of the third quarter thanks to its role in a major deal agreed to in July.

J.P. Morgan advised on Brookfield Reinsurance Ltd.'s deal for American Equity Investment Life Holding Co., announced June 27. The two sides disclosed a definitive agreement July 4.

Once the transaction is finalized, Brookfield will acquire 79.6% of American Equity for $38.85 per share in cash, for a total value of $3.59 billion. When added to the three prior deals J.P. Morgan worked on during the second quarter, the firm has advised on $8.05 billion of deals so far this year.

Morgan Stanley was second on the insurance underwriter M&A league table courtesy of its role in two major deals announced in May.

The first of those transactions, Security Life of Denver Insurance Co.'s acquisition of Farmers New World Life Insurance Co.'s in-force individual life insurance business, was announced May 17. The deal, valued at $1.8 billion, closed in August.

The second deal, RenaissanceRe Holdings Ltd.'s planned acquisition of Validus Reinsurance Ltd. and Validus Specialty LLC's treaty reinsurance business from American International Group Inc., was announced five days later. The transaction is valued at $2.99 billion and is expected to close by the end of the year.

Three firms — Ardea Partners LP, Barclays Capital Inc. and BMO Capital Markets Corp. — tied for the third position thanks to their roles in the Brookfield acquisition of American Equity.

With five deals under its belt, Propel Advisory Group Inc. worked on the most transactions involving insurance underwriters during the first three quarters of the year.

J.P. Morgan's four deals secured it the second place on the deal volume chart, followed by Piper Sandler & Co. with three deals. With two deals each, the fourth position was jointly held by Morgan Stanley, Barclays Capital Inc., BMO Capital Markets Corp., RBC Capital Markets LLC and Marsh Berry & Co. Inc.

Legal advisers

Debevoise & Plimpton LLP set the pace as legal advisers on insurance underwriter deals, having worked on five M&A deals.

The second slot was filled by Sidley Austin LLP and Skadden Arps Slate Meagher & Flom LLP, each of which worked on four deals, followed by Mayer Brown LLP, which was involved with three deals.

With two deals each, Faegre Drinker, Morgan Lewis & Bockius LLP, Schulte Roth & Zabel LLP and Willkie Farr & Gallagher LLP jointly filled fifth place.

Debevoise & Plimpton LLP and Sidley Austin LLP filled the top two positions for deal value, with $7.64 billion and $4.79 billion, respectively. Cravath Swaine & Moore LLP and Sullivan & Cromwell LLP tied for third with $3.59 billion in one deal.

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Broker deals

Morgan Stanley and Truist Securities Inc. jointly took the top spot for financial advisers working on insurance broker deals. The two companies worked on a deal involving an investor group composed of Mubadala Investment Co. PJSC and Stone Point Capital LLC acquiring 20% of Truist Insurance Holdings Inc. Announced Feb. 16, the $1.95 billion deal closed April 3.

Piper Sandler filled the next position with $510 million across two deals followed by Evercore Inc., which acted as a financial adviser on American Financial Group Inc.'s $240 million cash acquisition of Crop Risk Services Inc. from AIG. The deal, announced on May 2, was completed in early July.

Having worked on 74 deals, Sica Fletcher LLC was financial adviser on the largest number of insurance broker deals during the first three quarters of the year. Marsh Berry & Co. Inc. took the No. 2 position by advising on 48 insurance broker deals. TAG Financial Institutions Group LLC advised on 29 deals during the first three quarters of the year, good enough for the third spot.

Cleary Gottlieb Steen & Hamilton LLP, Davis Polk & Wardwell LLP and Simpson Thacher & Bartlett LLP jointly shared the top position in terms of legal advisers on insurance broker deals by transaction value, having advised on the partial investor group deal for Truist Insurance Holdings.

The only law firm to advise on more than two deals during the first three quarters was Giordano Halleran & Ciesla PC, which worked on 24 deals.

Insurtechs

Alvarez & Marsal Holdings LLC, Jefferies LLC and Oppenheimer & Co. Inc. each worked as financial advisers for one insurtech deal each during the first three quarters of 2023. Similarly, Sheppard Mullin Richter & Hampton was the only law firm to serve as a legal adviser for an insurtech deal.