“From 2019 to 2021, we noticed a rise within the quantity in dealmaking. However in 2022, as we entered a state of hyperinflation, rates of interest spiked sooner than I feel people anticipated, and it created plenty of uncertainty,” Chen informed Insurance coverage Enterprise.
Squeezed by greater rates of interest, gamers tightened their budgets. Many insurers shifted in direction of margin enchancment, specializing in price and strategic progress whereas de-prioritizing acquisitions.
Deal quantity within the US and Bermuda in 2022 dropped greater than 27% in comparison with the 12 months earlier than, in accordance with Deloitte. Total deal worth tumbled 69% from 2021.
What are the highest insurance coverage M&A traits of 2023?
One of many largest traits is a rise in embedded insurance coverage, which is able to see insurance coverage firms converging an increasing number of with non-insurance gamers.
