Sampo's Topdanmark deal stands out in a subdued Q2 for EMEA insurance M&A

Pan-Nordic insurance group Sampo Oyj's planned acquisition of the remainder of Danish insurer Topdanmark A/S was by far the largest insurance M&A deal in Europe, the Middle East and Africa in the second quarter of 2024.

Sampo is paying €2.2 billion for the 50.5% of Topdanmark it does not already own, making it the only EMEA insurance deal valued at over €1 billion announced in the quarter.

The next-largest transaction was BNP Paribas insurance subsidiary BNP Paribas Cardif SA's acquisition of a 9% stake in Belgian insurance group ageas SA/NV from Chinese conglomerate Fosun International for €730 million.

All other acquisitions in the quarter for which transaction values are available were below the €200 million mark.

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With 77 transactions announced, deal activity in the second quarter of 2024 remained subdued relative to most of the past five years, although there was a slight increase from the first quarter total of 74. There were 151 deals in the first half of 2024 overall, compared with 171 in the same period of 2023, and 2023 averaged around 91 deals per quarter.

The slight increase in EMEA insurance deal volume in the second quarter is in keeping with the trend across all sectors in Europe and insurance underwriter transactions in the US, but stands in contrast to US and Canada overall, where deal numbers fell.

Insurance broker transactions continued to drive EMEA insurance volumes, making up roughly 78% of the announced acquisitions. Acquisitions of whole companies also still dominated, accounting for around 84% of deals.

Despite the relatively subdued level of activity in 2024 to date, the impetus for transactions remains, as several insurance groups in Europe continue to fine tune their structures by buying and selling units.

Norwegian insurer Gjensidige Forsikring ASA agreed to sell its Baltics operations to the international subsidiary of ERGO Group AG, the primary insurance arm of Munich Re, for €80 million in July, which will add to the third quarter total. Spanish insurance group Mapfre SA has indicated recently that it is open to acquisitive growth in several of its existing regions, including Europe.