The global insurance M&A landscape, which saw steady flow of deal activity across many of the core global insurance markets throughout 2014, is expected to remain active this year as large insurers, particularly from Asia, look for diversification, capability and access to international investment markets.
The regulatory change in markets like India and China is also expected to drive interest this year, the 2015 insurance M&A report published by KPMG said.
While insurance M&A may get a boost from Africa, which is considered as high growth market that presents opportunities, Asia and Latin America are also expected to attract insurance M&A attention. Reverse deal flow is also a trend that is expected to continue, particularly in Asia.
Sam Evans, Global Insurance Deal Advisory Lead at KPMG in Switzerland, said the opportunities in high growth markets and the regulatory changes will offer an exciting M&A environment for the insurance sector this year.
He warns though that private equity, high growth market giants, and alternative capital providers will provide increasing competition to traditional global players.