Monday, May 15, 2006

 

Conning Research: Expect Increased Insurance M&A Activity in 2006 & 2007

Insurance industry mergers and acquisitions increased in 2005 to the highest level since 2001 and may foreshadow an acceleration of activity this year and the next, according to a new study by Conning Research and Consulting, Inc.

"There are a number of factors that lead us to expect a continuing increase," said Stephan Christiansen, director of research at Conning Research & Consulting. "The insurance industry is growing capital faster than revenues, and while revenue growth is anemic, prospective profitability appears relatively solid. Stock performance for the industry has been relatively strong as well, with each of the sectors outperforming the S&P 500 from 2002 through 2005. In addition, we believe advantages of scale are increasing in the industry for a variety of reasons."

Conning Research: Expect Increased Insurance M&A Activity in 2006 & 2007
Source: PR Newswire

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