trending Market Intelligence /marketintelligence/en/news-insights/trending/OgXWslzC-WpWmP-0RcZW6Q2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Insurance M&A Q4'16 scoreboard

Infrastructure Issues: Tools to Dig Deep on Potential Risks

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Insurance M&A Q4'16 scoreboard

An S&P Global Market Intelligence analysis found that there were 544 deal announcements in the insurance sector in 2016, with an aggregate disclosed deal value of $27.39 billion.

That represents a significant drop in both volume and transaction value from 2015, which saw 604 deal announcements with an aggregate disclosed deal value of $164.19 billion.

Despite the annual declines, insurance brokers posted their largest fourth-quarter aggregate announced deal value since 2010. In the fourth quarter of 2016, announced insurance broker deal values totaled $4.47 billion.

SNL Image

SNL Image

The largest deal of 2016 involved Sompo Holdings Inc., one of the largest insurers in Japan, which in early October of that year announced plans to acquire Endurance Specialty Holdings Ltd. for $6.3 billion. The price tag represents about 1.4x Endurance's book value, according to S&P Global Market Intelligence calculations.

With the return of Asian investors driving notable transactions, consolidation activity ticked up in both the property and casualty and the life and annuity spaces. Factors such as negative interest rates and demographic challenges have led Japanese insurers to look to certain international markets for expansion. Interest from Chinese acquirers, meanwhile, has generally stemmed from their desires to diversify their portfolios in a relatively safe manner.

Endurance Specialty Holdings shareholders voted in favor of the proposed merger at a special general meeting held Jan. 27.

The second-largest announced deal of 2016 was Liberty Mutual Holding Co. Inc.'s planned acquisition of Ironshore Inc. The deal, announced in early December 2016, was valued at $3 billion, representing 145.5% of Ironshore's book value. The combination is expected to create the fifth-biggest excess and surplus insurance carrier, based on 2015 premium volumes.

Two mega-deals that could have changed the face of the U.S. health insurance industry have been blocked by the courts, which ruled that the combinations would do unacceptable harm to competition in the industry. In January, a federal judge blocked the proposed merger between Aetna Inc. and Humana Inc. writing that he was unconvinced that the efficiencies created by the merger would mitigate the anti-competitive effects that would be felt by consumers. After mulling their options, the two sides announced Feb. 14 they had opted to pull the plug on the deal. Humana will receive a breakup fee, net of tax, of about $630 million. Aetna also terminated its deal to sell certain Medicare Advantage assets to Molina Healthcare Inc.

Another federal judge blocked on Feb. 8 Anthem Inc.'s proposed acquisition of Cigna Corp. Those two companies have not announced plans to either appeal the ruling or terminate the transaction. Under the merger's terms, Cigna could receive a $1.85 billion termination fee.

SNL Image