Ardonagh's acquisition of PSC Insurance leads largest APAC deals in 2024

The Ardonagh Group Ltd.'s acquisition of the entire shareholding of PSC Insurance Group Ltd. was the largest deal announced in the Asia-Pacific insurance market in 2024 based on transaction value, according to an S&P Global Market Intelligence analysis.

The UK-based insurance broker entered into a scheme implementation deed in May 2024 to acquire all of Australia-based PSC Insurance's issued ordinary shares for A$6.19 per share. The US$1.49 billion transaction, which was completed in October 2024, is the largest deal with a publicly disclosed value in Ardonagh's history. The combined entity became a privately owned insurance distribution player in Australia that places A$3.3 billion in gross written premiums annually.

Oversea-Chinese Banking Corp. Ltd.'s voluntary unconditional general offer to purchase the remaining 11.56% stake it did not already own in Singapore-based Great Eastern Holdings Ltd. for S$25.60 per share was the second-largest transaction during the year, with a value of US$1.03 billion. The offer closed in July 2024, increasing the lender's stake in Great Eastern to 93.52%.

South Korea-based Woori Financial Group Inc.'s pending acquisition of a 75.34% stake in Tong Yang Life Insurance Co. Ltd. was the third-largest deal in 2024. The planned transaction drew regulatory scrutiny, with Financial Supervisory Service Governor Lee Bok-hyun voicing concern about whether Woori Financial has accounted for the heightened risk of acquiring life insurers in its overall risk management. The US$965.2 million deal was announced in August 2024.

The planned acquisition of Tong Yang Life Insurance may become unfeasible if the regulator lowers Woori Financial's management assessment rating based on the findings of its 2024 inspection, which uncovered 233.4 billion won of suspicious loans at Woori Bank, The Korea Times reported.

Woori Financial did not immediately respond to Market Intelligence's request for comment.

In November 2024, Insurance Australia Group Ltd. entered an agreement to acquire a 90% stake in Australia-based RACQ Insurance Ltd., the insurance underwriting business of The Royal Automobile Club of Queensland Ltd., with an option to purchase the remaining 10% in two years. Expected to be completed in the third quarter of 2025, the US$554.8 million transaction was the fourth-largest deal of 2024 and the largest of the fourth quarter of 2024.

Malaysia-based Public Bank Bhd. entered a conditional agreement in October 2024 to purchase 175,896,000 ordinary shares, or an approximately 44.15% equity interest, in LPI Capital Bhd. for a total cash consideration of 1.72 billion ringgit. The deal was the fifth-largest transaction announced during the year, with a value of US$402.5 million.

A noteworthy deal that was announced in early 2024 is Assicurazioni Generali SpA's pending acquisition of a 51% stake in Generali China Insurance Co. Ltd. from CNPC Capital. The acquisition, which was the largest deal in the first quarter of 2024 based on transaction value, will make Generali the first foreign player to obtain a controlling stake in a property and casualty insurer from a single state-owned entity in China through a mandatory public auction process.

– Read about potential M&A activity in the global insurance sector on In Play Today, and a summary of recently announced deals on M&A Replay. – Access deep dives into insurance transactions across the globe via our Deal Profile feature. – Use the screener to access M&A data on the S&P Capital IQ Pro platform.

Deal activity in APAC insurance market slows

There was a total of 77 deals targeting insurance underwriters, insurance brokers or insurance technology companies in Asia-Pacific in 2024, compared with 97 deals in 2023. The number of deals in 2024 is the lowest total annual deal count since at least 2020.

Australia and New Zealand had the highest number of deals in the region with 24 transactions, followed by Southeast Asia with 14 deals and Japan with 13 deals.

Some other noteworthy deals with targets in Australia and New Zealand include Nippon Life Insurance Co.'s proposed acquisition of a 20% stake in MLC Ltd.; Suncorp Group Ltd.'s recently completed sale of its Asteron Life Ltd. business to Resolution Life NOHC Pty. Ltd.; AUB Group Ltd.'s completed acquisition of a 70% equity stake in Pacific Indemnity Underwriting Solutions Pty. Ltd.; and Allianz Australia Ltd.'s purchase of Royal Automobile Association of South Australia Inc.'s general insurance business.