Insurance M&A still has room to run
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What happens to M&A when organic growth gets harder to find?
That’s one of the questions Howden Capital Markets & Advisory’s Bill Cooper, Managing Director, and Leo Beckham, Head of UK & Europe, discuss in a new episode of Insurance Insider’s Behind the Headlines podcast with Sam Casey.
Their view is that there’s more to come. Larger carriers are looking at acquisitions for growth, while a number of independent businesses are likely to consider a refinance or sale.
Bill Cooper said: “It’s that sort of double-sided coin, I suppose, of there is still buyer interest, and there are still a number of platforms out there that will probably trade at some point in the next two or three years.”
But M&A is only part of the story.
The way capital comes into insurance is changing too. Investors are getting more familiar with the sector and new structures are giving them different ways to participate. Lloyd’s is playing an important part in that shift:
Leo Beckham said: “Lloyd’s is making itself the marketplace of matching portfolios of risk with investor capital.”
Bill and Leo also look at the continued growth of MGAs. The model has become an established part of the market, but building a successful platform isn’t easy. Underwriting quality, specialist expertise, strong capacity relationships and a clear point of difference all matter.