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Creating Value in Insurance M&A
Article

Creating Value in Insurance M&A

Pia Tischhauser, Miguel Abecasis, Miguel Ortiz, Davide Corradi and Jens Kengelbach
Boston Consulting Group, 2016
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Editorial Rating

7

Qualities

  • Analytical
  • Eye Opening
  • Overview

Recommendation

Although 2016 M&A activity in the insurance industry was on the upswing, a Boston Consulting Group study found that almost half the deals it analyzed diminished rather than added shareholder value. In this succinct but informative article, BCG professionals provide strategic guidelines on how to improve the odds of success. They highlight the fact that synergy – a buzzword that often appears in M&A announcements – doesn’t always materialize after deals close. getAbstract recommends the disciplined BCG approach to insurance executives, financial managers, investment bankers, investors and anyone involved in the insurance sector.

Take-Aways

  • Insurance sector M&A activity in 2016 was on the upswing, propelled by stricter regulatory requirements, low yields from investments, new competition, tepid growth prospects and technological changes.
  • A study found that some 49% of insurance company deals analyzed have decreased shareholder value.
  • Insurance companies engaged in M&A should focus on three important aspects: First, managers should conduct an in-depth analysis of the target company.

About the Authors

Pia Tischhauser et al. are professionals with the Boston Consulting Group.

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