Q2 Insurance Update - Mergers & Acquisitions


Clare Eades Market Update, Financial Services, insurance...

Q2 saw the closure of many high-profile deals which had been in talks for quite some time.

Announced back in May 2015, we finally heard that the completion of XL Catlin merger deal was complete. This had been in the pipeline since December of last year and all came together with the apparent seamless effort and a real credit to the integration team. This was epitomised by the fact that on the same day this merger was complete, the corporate branding had been changed in the office, on the website and email correspondence.

The announcement of Towers Watson, which acquired Willis to create a global risk management & insurance brokering business, to form Towers Watson-Willis took place on 30th June 2015.  This $18bn transaction will create a major integrated global advisory, brokering and solutions provider.  

Ace is set to buy insurer Chubb for $28.3bn (£18bn) in a deal which will see Ace shareholders taking a majority stake in the combined business. This is the largest deal in insurance history and will allow Swiss insurance giant ACE Ltd access to wealthy clients and create the world's largest property and casualty insurer by underwriting income.

Merger and Acquisitions are sure to be a growing trend for the future, as companies look at increasing their distribution networks and the competition between companies gets stronger.  

Clients have continued their drive on process optimisation and simplification. This has resulted in both permanent & contract markets remaining buoyant with increased demand for both skill sets. However, this is leading to competition between businesses pursuing the same skill sets across the board in every sector.