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Conning: Life-Annuity and Health M&A Slowed Initially Because of Covid-19, but Rebounded and will likely continue in 2021.


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HARTFORD, Conn., April 20, 2021 /PRNewswire/ M&A activity involving acquisitions of life-annuity and health insurers slowed considerably in the early part of 2020 as the Covid-19 pandemic took hold and market participants adjusted to the socially distanced work and changed economic environment. Activity rebound in the latter part of the year as market participants made those adjustments.
The economic response to Covid-19, especially the significant decrease in interest rates, has reduced life-annuity insurer expectations of a recovery in portfolio yields, said Scott Hawkins, a Director, Insurance Research at Conning. These lower expectations have driven life-annuity restructuring transactions, especially of annuity companies and books of business. In 2021, further restructuring is likely. ....

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