AM Best


Best's Journal: Consolidation and Diversification Drive Insurance Mergers and Acquisitions in First Half 2014


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Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - AUGUST 18, 2014 03:51 PM (EDT)
Global mergers and acquisitions (M&A) across the insurance industry continued at a steady pace in the first half of 2014, as companies pursued deals that would broaden their footprint or take advantage of new and developing markets, according to the centerpiece report in the latest edition of Best's Journal, a biweekly publication that presents A.M. Best's original research, analysis and commentary on the global insurance industry. Based on A.M. Best research, 35 property/casualty and reinsurance M&A deals were announced globally during the first six months of 2014. The available disclosed amount for these deals was approximately USD 5.6 billion, or slightly more than half of about USD 10 billion announced for all of 2013. On the life/health side, 14 deals were announced globally during the same period with a total disclosed value of approximately USD 10.6 billion. This amount is a little more than half of the approximately USD 18 billion in activity for all of 2013.

Other highlights in this issue of Best's Journal include as follows:


  • U.S. Health Insurers' First-Quarter 2014 Earnings Hit by Affordable Care Act: Many health insurers' first-quarter 2014 results were negatively impacted by inclusion in their income statement of the entire annual industry fee assessed under the Affordable Care Act (ACA), according to a Best's Briefing.

  • New U.S. Health Co-ops Fight Through Financial Strains of Launch Phase: This Best's Briefing explores how any of the Consumer Operated and Oriented Plans established under the ACA are experiencing growing pains typical of start-ups, including high expenses, underwriting losses and, in some cases, claims exceeding net premiums.

  • Change Ahead for U.S. Monetary Policy?: This Best's Views looks at how the U.S. economy performed in the second quarter of 2014, following a first quarter that saw growth contract.

  • Recent noteworthy Best's Credit Rating Actions, rating rationales and more.


Best's Journal is available exclusively as part of a subscription to the Best's Insurance News & Analysis service, and is delivered every two weeks as a bound, printed publication and in digital format via the Best's Insurance News & Analysis website. Each issue is an installment in a cumulative business resource that provides insight from A.M. Best's perspective as a credit rating agency, data provider and news publisher with a unique focus on the insurance industry.

To learn more about Best's Journal, watch a brief video at www.ambest.com/sales/aboutbestsjournal.html. More information about the Best's Insurance News & Analysis subscription service is available at www.ambest.com/sales/bina/default.asp. To order, contact Customer Service at (908) 439-2200, ext. 5742 or at (800) 424-2378 when calling from the U.S. and Canada.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.