Merger, Acquisition Activity Remains Muted in 3Q

November 23, 2011

Financial market volatility and a difficult operating environment continued to stifle mergers and acquisitions activity for the property/casualty insurance industry during the third quarter of 2011, according to a new report.

During the third quarter of 2011, more deals were announced than completed, reported GC Securities, a division of MMC Securities Corp. Sixteen transactions were announced, with a combined value of $1.5 billion, including Nationwide Mutual Insurance Co.’s intention to acquire Harleysville Group for approximately $816 million.

“Over the past 18 months, acquirers have increased their focus on small to midsize specialty, niche businesses that can be easily integrated into larger platforms,” said Christopher Ezbiansky, head of M&A Advisory – Americas, GC Securities. “Insurance operations offering access to unique market segments, specialized products or a combination of both have been the most attractive targets.”

Ezbiansky says overall deal activity should “remain muted in the fourth quarter.”

For the complete update, visit www.GCCapitalIdeas.com, where GC Securities Update: 2011Q3 P&C Insurance Mergers and Acquisitions Activity is available for download.

Source: GC Securities

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