INDUSTRY INSIGHT: Re/insurers likely to dive into M&A to escape adverse market conditions, survey suggests

05-08-2016

INDUSTRY INSIGHT: Re/insurers likely to dive into M&A to escape adverse market conditions, survey suggests

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The low interest rate environment and soft market will lead to greater consolidation in the industry, according to the majority of Intelligent Insurer readers who participated in an online survey.

The low interest rate environment will put pressure on investment returns for an extended period after the UK’s vote to leave the EU, which has also increased market volatility and may drive the UK economy into recession.

Meanwhile, the liability side of companies is being squeezed by soft rates. High levels of capacity, exacerbated by the alternative capital that has poured into the reinsurance market, has been made worse by the absence of any large losses in property/casualty in recent years.

The survey, which was taken by 87 readers, revealed that 63 percent expect an increase in mergers and acquisitions activity as profits become increasingly pressurised.


Swiss Re, Brexit, EU Referendum, P&C, Insurance, M&A, Reinsurance, UK, Europe, Christian Mumenthaler

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