Friday, March 31, 2017

This year 94% of global insurers selling plan ... M & A activity

[Goyounghun financial newspaper reporter Korea] came the comment that insurers worldwide mergers and acquisitions (M & A) is conducted briskly this year.

Accounting and consulting firm KPMG is among the 84% of the 1-3 cases of takeovers this year, the global insurance plans, 94 percent were diagnosed 31 days it was considering the sale of at least one gun.

According to the KPMG report, global insurers have been actively excavated and analyzed that the M & A opportunities for business innovation in a situation where the economic uncertainty continues.

KPMG said surveys such as annual sales of 1.5 billion US dollars (about 1.6 trillion won, Hanwha) or more global insurers subject to the executive 200 people conducted over the next one year M & A and corporate strategy. Asia Pacific (33%) and Europe, Middle East and Africa (33%), had responses from North America (33%), respondents sector life insurance (25%) and non-life insurance (25%) and reinsurance (25% ), others were composed of insurance brokers (25%).

According to the survey, it indicated that they are about 67% of global insurers are planning a cross-border acquisitions this year. When 55% of respondents considering that the presence in the market for less than five Currently, some insurers have response would seek business opportunities in new markets.

Where most consider as acquisition targets many countries hyeotgo the US (25%) sees, it was the Chinese (12%) followed. By region, Asia Pacific was the most common (47%), accounted for more than twice the second largest in North America (21%).

The United States provided a short-term strategy to underwriters and investors seeking a diversified global business, and predicts that Asia will provide long-term growth opportunities as a place that represents the emerging markets.

On the other hand, the magazine said this year's most significant assets ahead of Western Europe (48%) and Asia Pacific (21%) in the area to sell. The report predicts that the sale by the opportunity to experience the new capital regulatory regime (Solvent City Ⅱ) applied in most of Europe, except northern Europe last year.

Solvent City Ⅱ is a system that gained some reserves so that insurance companies are able to fulfill the obligation to pay insurance if losses occur unexpectedly, KPMG explained that insurers can not raise the capital they need these may withdraw the project.

Global insurers (62%) have either established themselves as a corporate venture capital (CVC) to drive enterprise innovation show that the planned establishment. In particular, global insurers and strengthening the corporate venture capital capacity primarily in such a way to invest in innovative technology capabilities, in fact, 54% of the responding companies established model CVC said they are investing in technology uninsured.

Samjung KPMG Financial Business Division Han Eunseop deputy is "insurance debt market evaluation system and a new regulatory environment, including new solvency regime introduced based on the Ⅱ when Solvent is competitive in also a big challenge, but raise capital soundness international financial markets, the domestic insurance companies there can as an opportunity to secure, "he said.

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