A.M. BestTV: The Return of the Mega Deal During First Half of 2015

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FOR IMMEDIATE RELEASE

OLDWICK - SEPTEMBER 23, 2015 02:53 PM (EDT)
This episode of ^A.M.BestTV examines a new Best’s Special Report on the surge in insurance and reinsurance mergers and acquisitions (M&A). A.M. Best Senior Industry Research Analyst Erik Miller reviews the strategies driving the increase in M&A activity, which includes capturing underwriting talent, diversifying and building scale. Click on http://www.ambest.com/v.asp?v=manda915 to view the entire program.

Miller believes that slow growth is a contributing factor in the M&A surge, but sees global diversification and the drive in global cross-selling opportunities as the real driver.

“Today, companies have a lot more cash on-hand and better balance sheets than in 2008,” said Miller. “Industry rates remain at historic lows, and a combination of easy access to capital and financing, along with the need to capture profitability are what’s driving this boom.”

Additionally, Miller notes that primary markets are not being impacted in the way they would like by the reinsurance M&A surge.

“Reinsurance is really trying to consolidate the industry, with the hope that consolidation will drive better pricing, bargaining power and terms of condition, on these reinsurance blocks. However, this is not happening. What is happening is reinsurance pricing is continuing to decline,” stated Miller.

Special reports are available for the U.S. health, life/annuity, property/casualty and global reinsurance markets. To access a copy of any of these special reports, click on http://www.ambest.com .

Recent episodes of ^A.M.BestTV include:

• Reinsurers and Capital Markets: A Greater Transformer: Highlights of a recent webinar where A.M. Best Vice President Robert DeRose, Managing Senior Financial Analyst Greg Reisner and Senior Financial Analyst Scott Mangan discussed how the widening access to alternative capital is opening up new opportunities for reinsurers, especially larger reinsurers with broader access: http://www.ambest.com/v.asp?v=globalrepanel915.


• The Rendez-vous Conference: Full-length conference coverage and interviews are available at: http://www.ambest.com/montecarlo.


• Surplus Lines Executives Focus on Rising Catastrophe, Cyber Claims: insurance leaders at the annual National Association of Professional Surplus Lines Offices convention in San Diego, CA, talk about cyber liability claims, which are starting to have significant repercussions. In addition, some companies are reporting surprising levels of natural catastrophe losses, despite few headline events: http://www.ambest.com/v.asp?v=napslo1915.


• Global Reinsurers Contend With New Reality: A.M. Best Vice President Robert DeRose and Senior Financial Analyst Mariza Costa discuss the sweeping changes that are taking place in the global reinsurance market: http://www.ambest.com/v.asp?v=fmreinsurance915.

^A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View ^A.M.BestTV episodes at http://www.ambest.tv .

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