Merger and acquisition (M&A) activity in European insurance markets is set to rise, according to Standard & Poor's.
In its latest report Standard & Poor's said interest in M&A opportunities had fallen in recent years, with few buyers willing to exploit new opportunities. S&P said the recent lack of capacity to finance M&A activity was compounded by the reluctance of insurers to take on acquisition risk.
However S&P predicted more deals were now likely as economic conditions improved. S&P analyst David Anthony said: "Although in recent years big-ticket M&A transactions have been conspicuous by their absence, some European groups are now admitting to a growing appetite for acquisition."
The report claimed that future M&A activity was likely to be intermittent, with insurers expanding organically rather than through acquisitions.
