The number of mergers and acquisitions (M&A) globally in the insurance industry rose 10% to 419 deals last year, the highest in four years, international law group Clyde & Company says.

“Activity was driven by an exceptionally strong first-half of the year, led by a spike in deals in Europe that had been put on hold during Brexit preparations,” it says in a new report.

“Although M&A dropped back in the second-half of the year, activity globally remained buoyant compared to the levels of recent years.”

The Americas region led the way with 182 deals, followed by Europe on 155 and Asia Pacific on 69.

While M&A activity is expected to remain steady this year, the law firm warns the coronavirus outbreak, the US presidential election in November and trade talks between the UK and European Union could affect investor appetite.

“M&A in the US could be impacted [this year] by the upcoming presidential election,” the report says. “Some deal-makers may look to complete transactions ahead of a possible change in administration, while others will opt to put plans on hold until uncertainty over the result is resolved.

“A similar situation exists in Europe, which should see a return to business as usual now Brexit preparations are mainly completed. However, as the details of the future trading relationship between the UK and the EU remain unclear, this may spur transactions during the transition period.”