Insurance M&A may continue amid some ‘patchy’ results, S&P says

Standard & Poor’s analysts take a conservative view on M&A for rated insurers, and place a heavy emphasis on the risks. (Photo: Shutterstock)

The flurry of insurance mergers and acquisitions that yielded about $150 billion of transactions globally in 2015 may endure even after years of “patchy” results for some companies making deals, according to ratings firm Standard & Poor’s.

Track record is not great

“We believe the deal flow for M&A in the insurance industry will continue in 2016, albeit more slowly,” Standard & Poor’s analysts led by Dennis Sugrue said Monday in a report. “While a successful M&A can benefit the surviving entity, the general consensus is that its track record is not great.”