A new report by Deutsche Bank analyst Yaron Kinar looks at the potential for M&A deals in the life insurance industry.
Despite recent consolidation in the managed care and property and casualty (P&C) space, Kinar believes that the current environment in the life insurance industry is not a favorable one for large acquisitions.
No Big Deals In The Works
While small-scale deals such as selective purchasing of legacy blocks and acquisitions of asset management businesses remain possible, Kinar believes that the overall life insurance M&A environment will remain quiet for the most part. Kinar sees no large-scale buyouts of core life insurance businesses on the horizon any time soon.
According to the report, the highest probability of M&A activity among life insurers in the near term lies in foreign companies looking for small-cap buyout opportunities in the $2-3 billion market cap range.
Uncertain Environment
Kinar mentions…
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