Also this week...
IPC rejects Max merger
Shareholders at IPC Holdings rejected Max Capital’s merger offer on Friday leaving room for Validus’s hostile takeover bid. Validus has warned IPC it will replace the IPC board if an agreement is not reached on its offer. Following the vote, Max Capital withdrew its merger agreement and plan of amalgamation for IPC.
W Marston Becker, chairman and chief executive of Max Capital, said: “The board, employees and shareholders of Max were excited about the deal with IPC, and we are, of course, disappointed. We believed and continue to believe that the combination of Max and IPC would have created significant value for both companies' shareholders. However, we also believe that maintaining our perspective and discipline as a participant in this process was in the best interest of our shareholders. Max will continue to focus on building the value of our global business."
Future for global growth
Despite the turmoil in the global economy, 62% of insurers plan to grow outside of their home market in the next 12 months, according to findings of a global survey released by Accenture. The survey asked more than 100 leading life insurers and property and casualty (P&C) insurers in 16 of the world’s largest insurance markets how they see the future for profitable international expansion. 75% of respondents believe that despite the current downturn, the next three years will offer more opportunities to grow outside their home market. The survey also found that increased competition is expected in emerging economies and that carriers will seek better global integration to manage operations.