This year could be prolific for insurance mergers and acquisitions (M&A), according to a report from Deloitte.

M&A activity started slowly last year but gained speed in the second half, when seven deals worth $US1 billion ($1.28 billion) or more were announced – the same as in all of 2016.

Deloitte says conditions are right for this higher rate of activity to continue. Investor and consumer confidence is high, global economies are improving, interest rates are moving in the right direction, organic growth remains elusive and capital is at an all-time high.

“While sources of uncertainty remain, they are not currently impeding M&A activity in a material way,” the report says. “Given these conditions, we expect [this year’s] deal volume and value to be largely consistent with 2016 and 2017.

“And although we don’t anticipate any blockbuster deals along the lines of the Ace-Chubb transaction, we could see numerous smaller deals – $US1 billion to $US3 billion ($3.83 billion) – and a handful of $US5 billion-plus ($6.4 billion) deals as companies look to utilise M&A to achieve their strategic objectives.”