Insurance carrier mergers and acquisitions (M&A) activity reached its lowest level in 15 years during the first half of 2024, with only 103 deals reported, according to Clyde & Co’s mid-year report. The decline is attributed to factors including high inflation rates, rising interest rates, and sellers’ expectations for elevated pricing, which have led potential deals to stall. While the U.S. and Canada experienced the most transactions, highlighted by Brookfield Reinsurance’s $3.587 billion acquisition of American Equity Investment Life, overall global deal-making has been sluggish. Analysts suggest that conditions may improve in the latter half of 2024 and into 2025, with a potential shift towards larger, multi-country transactions driven by the need for technological integration and talent acquisition.
