UK maintains year on year insurer M&A growth

The number of insurance deals in the UK has increased year on year in the five years to 2013, according to the Clyde & Co Global M&A Report.

The UK and Russia are the two largest markets in Europe for M&A. In the past five years, 43% of all the deals in Europe took place in the UK and Russia, and while Russian activity has plateaued, the number of deals has continued to increase in the UK.

The global head of the corporate insurance group at Clyde & Co Andrew Holderness said: “In terms of transaction activity in the insurance industry, the UK has bucked the global downward trend and seen comparatively solid levels of deal-making activity over the last five years, albeit with some peaks and troughs.”

Across the whole of Europe, deal volume fell by 30% year on year between 2009 and 2013.

Europe was the busiest region in terms of transactions between 2009 and 2013 according the M&A report. However, the volume of European M&A deals has lagged the US since 2011.

Holderness said: “The last several years have seen a lot of new capital – particularly from private equity and hedge funds – coming into the market.”

Two M&A deals were announced in the last week in the UK. Private equity house BC Partners bought a controlling stake in motor specialist Sabre Insurance for an undisclosed fee and Arthur J Gallagher paid £233m for Giles.