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European Insurance M&A Barometer Report 2023
Welcome to FTI Consulting’s European Insurance M&A Barometer Report for 2023. Building on the prior H1 2023 report, this edition provides a comprehensive review of insurance deal activity across the region throughout 2023, exploring key trends in the mergers and acquisitions (“M&A”) market, major deals and influential players shaping the landscape, as it continued to be an active year for the insurance market.
FTI Consulting’s European Insurance M&A Barometer
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574
2023 review section: despite unfavourable economic conditions, activity continued to increase in 2023 with 574 deals announced.
Increased activity across the sector
2023 DEAL HIGHLIGHTS
81
DACH continues to be one of the most fragmented markets in Europe. 81 transactions were announced with 95% of deals belonging to distribution and service providers.
All eyes are on the Germany, Austria, Switzerland (“DACH”) region
39%
2023 saw an increase of around 39% in private equity activity — directly and through portfolio companies — with 366 announced transactions compared with 263 in 2022.
Private equity deals – 366 transactions
232
Despite the maturity and level of consolidation of this market, there was increase of 31% with 232 announced transactions in 2023, compared with 177 in 2022. Most of these were broker consolidation deals.
UK & IRELAND LEAD IN THE EU MARKET (INCLUDES BERMUDA)
87%
This sector accounted for 87% of Europe's deal volume in 2023. Several transactions made it to the finish line at high teen multiples during the year.
Broking and Service Providers – 502 deals announced
39%
In the carriers sector, deal volumes have increased, with 72 announced transactions compared with 58 in 2022, mostly on the property & casualty sector which almost doubled.
Carriers sector – 72 deals announced
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While all indications show that investor enthusiasm has cooled globally, this is not yet the case in Europe. Current conditions are not inhibiting the wave of consolidation in Europe’s insurance distribution sector that started just before the pandemic. 2023 was another eventful year for insurance intermediaries and service providers.
Increased Activity Across the Sector
2023 IN REVIEW
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2023 was another highly active year for insurance M&A across Europe amid continued uncertainty on macroeconomic conditions and much higher borrowing costs. Despite rising interest rates, European insurance M&A activity continued to increase in 2023 with 574 deals announced. Most deals were small, but there were several notably large transactions.
Broking attracted a variety of investors to fuel continued M&A activity, with 502 announced transactions compared with 377 in 2022. These transactions accounted for 87% of Europe’s deal volume in 2023.
Despite speculation that valuations for brokers might have hit a peak in 2022 and could decline in 2023, several transactions made it to the finish line at high teen multiples during the year.
Total European Insurance M&A Deals
2020
2021
2022
2023
285
379
435
574
Total European Insurance M&A Deals
Carriers
Brokers and Service Providers
66
74
58
72
219
305
377
502
2023 saw an increase of around 39% in private equity activity — directly and through portfolio companies — with 366 announced transactions compared with 263 in 2022. Strategic (non-PE-backed) buyers also pursued opportunities, with 208 transactions being announced compared with 172 in 2022.
In the carriers sector, deal volumes have increased, with 72 announced transactions compared with 58 in 2022, mostly on the property & casualty sector which almost doubled.
The legacy market faced challenges due to surplus capital, leading to more competitive pricing for transactions. Despite these obstacles, there is a positive short-to-medium-term outlook, as insurers seek to further optimise regulatory capital.
In the life sector, transaction volumes remained steady despite economic uncertainties, with 25 announced transactions, the same as in 2022. However, there is still significant interest from both private equity and strategic buyers in the UK bulk purchase annuity (“BPA”) market.
Total European Insurance M&A Deals by Acquirer Type
Private Equity (Direct)
Private Equity Portfolio Company
48
38
41
44
Strategic Buyer
145
200
222
322
92
141
172
208
Total European Insurance Carriers M&A Deals by Segment
Composite
Life
Non-Life
16
11
7
3
9
24
25
25
41
39
26
44
Regional Activity Levels
The UK and Ireland (including Bermuda) continue to lead the European market for insurance industry M&A. There were 232 announced transactions in 2023, compared with 177 in 2022, an increase of 31%. Notable transactions included the sale of Argo to Brookfield Reinsurance, the sale of Kentro to Brown & Brown and the merger of between Markertstudy and Ardonagh’s UK personal lines broking business.
Iberia was again the third most active market in continental Europe, with insurance M&A activity fuelled by broker consolidation. In 2022, announced transactions more than tripled, and activity has continued on an upward trend, with 2023 seeing 53 deals compared with 43 in 2022.
All eyes remain on the Germany, Austria, Switzerland (“DACH”) region, because it is one of the most fragmented markets in Europe. 2023 brought a strong continuation of deal announcements, with 81 transactions compared with 53 in 2022, including the sale of a minority stake of in MRH Trowe to TA Associates, of in GGW to Permira and of in Global Gruppe to Castik Capital.
The Benelux region remained consistent with its deal volumes in 2023 (48 announced transactions) compared to 46 in 2022. Many large independent brokers in the region are expected to enter the market within the next six to twelve months, potentially leading to record deal amounts.
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UK & Ireland Deals*
2020
2021
2022
2023
141
197
177
232
Total European Insurance M&A Deals by Market
Benelux
2020
2021
2022
2023
18
38
46
48
CEE***
***Includes Greece and excludes Russia
2021
2022
2023
18
24
15
27
2020
Nordics
2020
2021
2022
2023
32
26
41
56
DACH**
2020
2021
2022
2023
21
39
53
81
** Includes Lichtenstein
Iberia
2020
2021
2022
2023
11
13
43
53
Italy
2020
2021
2022
2023
15
20
29
32
France
2020
2021
2022
2023
29
22
31
45
*Includes Bermuda insurance market
Transaction Services
Organisations considering strategic transactions need extensive support prior to and throughout the deal life cycle to guarantee the best possible outcomes.
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Key Contacts
Rory O’Brien Co-Leader of Global Insurance Services Global Insurance Services rory.obrien@fticonsulting.com
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Page 8
United Kingdom, Ireland & Bermuda
Page 15
France
Page 18
Belgium, Netherlands & Luxembourg (“Benelux”)
Page 30
Central and Eastern Europe
(“CEE”)
Page 21
Italy
Page 23
Spain & Portugal (“Iberia”)
Page 25
Sweden, Norway, Finland & Denmark (“Nordics”)
Page 27
Germany, Austria & Switzerland (“DACH”)
Our experts consider European M&A activity by sub-region:
TRENDS AND PERSPECTIVES
Services
Related Insights
European Insurance M&A Barometer Report: H1 2023
More
European Insurance M&A Barometer Report 2022
More
Andre Frazao Head of Insurance M&A EMEA Global Insurance Services andre.frazao@fticonsulting.com
Jeremy Riley Managing Director Global Insurance Services jeremy.riley@fticonsulting.com
Conclusion: Insurance M&A Activity Across Europe Remains Optimistic
2023 was another highly active year for insurance M&A across Europe. This was in the midst of continued uncertainty on macroeconomic conditions and much higher borrowing costs. The feeling that there was already an overheated level of activity and valuation also continued. Although we are still not seeing any indicators that activity will decrease in 2024, it may be that as the longer-term impact becomes more apparent, we may begin to see some slowing of activity.
Discover FTI Consulting’s bespoke insights of Insurance M&A activity throughout 2023 – read the full report for more. To find out how FTI Consulting can help your company acquire or dispose of insurance businesses across Europe, please get in touch with one of our experts.
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