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Europeans pull back from insurance acquisitions

The number of insurance company acquisitions plummeted 76% across Europe last year.

A PricewaterhouseCoopers (PWC) report reveals the value of insurance sector acquisition deals fell to €11 billion ($21 billion) last year from €45 billion ($87 billion) in 2007.

PWC Partner Charles Garnsworthy says this year offers greater opportunities for insurers, with falling profitability and regulatory capital requirements likely to force sales at discounted rates.

He says current conditions offer insurers scope for “in-market and cross-border consolidation, and banks divesting insurance subsidiaries will provide further stimulus for mergers and acquisitions in the European insurance market”.