Insurance M&A Review 2022: Deal activity to slow from previous years’ highs

Despite the many purchases made by Berkshire Hathaway Inc. at the beginning of the year, insurance activity slowed significantly in 2022, reaching the lowest level since 2019, according to a study by S&P Global Market Intelligence.

Although 2021 was a special year for insurance transactions, with 1,150 announced during the year, 2022 saw the lowest activity with 685 up to the end of November – the lowest level since from 2019.

The number of insurance transactions also decreased year-on-year, from 184 in 2021 to 105 in 2022.

The group trades in the fall

The number of transactions in property and real estate, multi-line segment as well as the total value of transactions decreased in 2022. A total of 61 transactions were launched in 2022 with a total transaction value of $1.20 billion. . Last year, 81 deals were announced with a total transaction value of $12.81 billion.

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Transaction values ​​in the life sector fell significantly in 2022, with a total of $1.75 billion in 30 transactions. That number is the lowest since at least 2018 and a significant drop from 2021, which saw 62 deals with a total value of $27.26 billion.

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Berkshire Hathaway recorded the largest price

Eleven of the 15 largest insurance deals of 2022 were announced in the first half of the year and eight of the deals were aimed at insurers.

The largest insurance acquisition announced in 2022 was the acquisition by Berkshire Hathaway Inc. of property and casualty reinsurance company Alleghany Corp. The $11.57 billion deal was announced in March and completed in October.

Not long after the the agreement was announced, Alleghany was sued by a shareholder who accused the insurance company of making inappropriate and misleading statements. The federal lawsuit was voluntarily dismissed just weeks after it was filed, according to court records.

Of the second largest insurance cost of 2022 Brown & Brown Inc. acquired Global Risk Partners Ltd. was also announced in March. The $1.79 billion transaction was completed in July, and since the acquisition, Global Risk Partners has made its own purchases, UK-based seller insurance broker CC Flint and Co. Ltd. Terms of the purchase were not disclosed.

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One of many insurance transactions announced in the second quarter of 2022 the White Mountains Insurance Group Ltd. agreement. to sell NSM Insurance Group LLC to Carlyle Group Inc. in a transaction valued at $1.78 billion. The deal, first announced in May, closed in August.

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