A study by Clyde & Co indicates that during the first six months of 2023, 171 mergers and acquisitions (M&A) were carried out by the insurance market [4]. This represents a 17.4% decline compared to the second half of 2022, and a 29.3% drop compared to the first half of 2022.
The slowdown in activity was most pronounced in the Americas, where 79 transactions were recorded, marking a 24% decrease compared to the last two quarters of 2022.
The Middle East and Africa were the only regions to witness a rise in M&A activity, from 8 transactions as at 31 December 2022 to 9 as at 30 June 2023.
The downturn in transactions is attributable to a number of factors, including the lack of interest in insurtech on the part of insurers in certain regions, and the ever increasing number of cyber-attacks in the sector.
M&A activity trends by region
| Region | 2nd half of 2022 | 1st half of 2023 | Evolution |
|---|---|---|---|
| World | 207 | 171 | -17.4% |
| Americas | 104 | 79 | -24% |
| Europe | 60 | 47 | -21.6% |
| Asia Pacific | 33 | 29 | -12.1% |
| Middle East and Africa | 8 | 9 | +12.5% |