The Insurer TV’s Post

The State of M&A event put on by Cornerstone Business Services, Inc. is always a treat. We were able to get visibility on lower middle market M&A activity from Scott Bushkie and an economic outlook from Venkatesh (“Venky”) Balasubramanian from Goldman Sachs. One interesting item that was discussed is that reps and warranties insurance is increasingly getting purchased on smaller and smaller deals. If you're looking to buy or sell a business, contact me and the rest of the Gallagher Equity and M&A team to navigate the intricacies of transactional risk and reps and warranties insurance. #insurance #gallagher #repsandwarranties #transactionalrisk #equity #mergersandacquisitions

Following the news that Aspen Insurance Group and Accelerant have paused #IPO plans, and with new data out on #Insurtech fundraising in #Q1 from Gallagher Re, I thought to summarise capital raising in the P&C #insurance sector year-to-date. #ILS and cat bond fund raisings are running at a record pace, while the data below likely misses some private market activity (such as Aspen and PIMCO's collateralised casualty reinsurer, Pando Re, and The Fidelis Partnership's new Lloyd's syndicate, largely funded by Lloyd's members). Note the chart below is not a measure of growth in industry available capital - retained earnings ytd have been sizeable, while dividends and buybacks have also grown. Please do comment if there is an IPO that I have missed! I hope I have! Hard not to conclude that M&A will at some point pick up the slack for unenthusiastic equity investors...Table below USD millions. Sources: https://lnkd.in/ebgXA9CZ, Cat bond & related ILS market hits record size at over $47bn, up 5% so far this year - Artemis.bm https://lnkd.in/ex6icp_8

𝗦𝗶𝗻𝗴𝗲𝗿 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗠𝗮𝗿𝗸𝗲𝘁𝘀 𝗶𝘀 𝗱𝗲𝗹𝗶𝗴𝗵𝘁𝗲𝗱 𝘁𝗼 𝗵𝗮𝘃𝗲 𝗯𝗲𝗲𝗻 𝗮𝗽𝗽𝗼𝗶𝗻𝘁𝗲𝗱 𝗮𝘀 𝗝𝗼𝗶𝗻𝘁 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗕𝗿𝗼𝗸𝗲𝗿 𝘁𝗼 B.P. Marsh & Partners Plc ('𝗕𝗣𝗠') 𝘄𝗶𝘁𝗵 𝗶𝗺𝗺𝗲𝗱𝗶𝗮𝘁𝗲 𝗲𝗳𝗳𝗲𝗰𝘁. B.P. Marsh & Partners plc is a specialist private equity investor in early stage financial services businesses based in the United Kingdom and globally, with a specific focus on insurance intermediaries. The Company has a market capitalisation of £200 million. Read more 👉 https://bit.ly/4espRuc #newclient #financials #investmentbanking #londonstockexchange

Insurance brokers reported overall strong earnings results for Q3 2024, which were attributed to a combination of merger activity, strong renewals, and new business growth. Read Today’s ViewPoint blog post from MarshBerry and find out more details about public insurance brokers’ M&A activity updates and 2025 outlooks. https://hubs.ly/Q02Ydqk10 #MarshBerry  #MergersAndAcquisitions  #InsuranceBrokerage

Demand for UK insurance businesses is outstripping supply. This is continuing to support pricing in M&A deals, which has sharply risen in recent years and is being maintained, in spite of arguably less benign market conditions. Download MarshBerry’s Annual Insurance Distribution Market Report – M&A Market Structure & Review to gain key insights for 2024 in the UK including: >Market Highlights & Key Observations >2023 M&A Review & Transaction Analysis >Valuation Insights >2024 Outlook and Beyond #MarshBerry #MarshBerryEurope #MergersAndAcquisitions #CorporateFinance #BusinessPlanning #MarketIntelligence #Broking https://hubs.ly/Q02rbzM70

Demand for UK insurance businesses is outstripping supply. This is continuing to support pricing in M&A deals, which has sharply risen in recent years and is being maintained, in spite of arguably less benign market conditions. Download MarshBerry’s Annual Insurance Distribution Market Report – M&A Market Structure & Review to gain key insights for 2024 in the UK including: >Market Highlights & Key Observations >2023 M&A Review & Transaction Analysis >Valuation Insights >2024 Outlook and Beyond #MarshBerry #MarshBerryEurope #MergersAndAcquisitions #CorporateFinance #BusinessPlanning #MarketIntelligence #Broking https://hubs.ly/Q02rbtqq0

Are mergers and strategic realignments reshaping the insurance landscape? This week’s Market Update Monday covers two key stories: 1. Legal & General is considering the sale of its Retail Retirement unit, signaling a potential shake-up in the retirement market. 2. Insurance carrier deals have hit a 15-year low, reflecting cautious approaches in the current economic environment. What are your thoughts on these developments? Let’s discuss in the comments! Big thanks to Insurance Business Mag for the detailed reporting. Links to the articles: 1. https://lnkd.in/eHgW7d2D 2. https://lnkd.in/em9AehsJ #Insurance #FinancialServices #MarketUpdate #MergersAndAcquisitions #MGA #InsuranceInnovation #InsuranceDeals

Global reinsurer capital surges to US$670 billion in 2023, reveals Aon. Global reinsurer capital increased by 17 per cent to US$670 billion in 2023. https://lnkd.in/euC38Vy6 #captive #captiveinsurance

MULTIPLE MONDAY ~15x adjusted EBITDA paid for NFP, a P&C insurance agency, and benefits and wealth broker owned by Madison Dearborn Partners and HPS Investment Partners. We've been involved in various insurance agency transactions and this multiple is consistent with our experience. Valuation multiples tend to be high because of the perceived "stickiness" of this business (i.e. recurring revenue, with apparently 90-95% client retention) and insurance premium inflation driving above-average top-line organic growth. Aon is anticipating $2.8bn of synergies, which if realized, should materially reduce the multiple. Also important to note that Aon trades at above 18x so this deal should be accretive regardless. #mergersandacquisitions #valuation https://lnkd.in/ePc9Wxa7

Curious about the current trends in North America's insurance sector? The latest Mergermarket overview reveals that M&A activity is thriving and primarily being driven in the distribution market where brokerages are highly sought after despite rising valuations. Hear from A&M's Stacy Kirshner as she discusses the current opportunities for boosting sales commissions and driving organic growth: https://okt.to/rRHm3o #Amon #MarketTrends #MergersandAcquisitions Paul Aversano, Anthony Caporrino, Katia Lacy, Stacy Kirshner, Greg Cibuzar, Alison Fink, Jeremy Nanus