Insurers Ink $90 Billion in Merger Deals as They Pursue Post-Coronavirus Clout
Insurers pummeled by the pandemic are looking to deals as they race to see who’ll emerge strongest when the outbreak subsides.
The takeover of RSA Insurance Group Plc and Allstate Corp.’s largest acquisition ever have helped push industry deals announced this year to nearly $93 billion, according to data compiled by Bloomberg. With other major companies including Zurich Insurance Group AG eyeing purchases, 2020 is on course to be one of the biggest for deals since the last financial crisis.
Insurers were already under pressure to combine before the coronavirus battered their balance sheets, with record low bond yields and mounting regulation costs chipping away at their earnings for years. As the pandemic accelerates those trends and squeezes valuations, a new sense of urgency has kicked in. With the onus on boosting income from premiums, many are focusing on bulking up in markets where they’re firmly established and have the size to influence prices.