Re/insurance deal volume greatly slowed down in the second quarter of 2019 as interest rates reversed course and declined toward multi-year lows, according to analysts at PwC.
A recent report from the firm found that deal volume among re/insurance companies decreased by 22% compared with the first quarter of 2019 and was roughly similar to the level recorded in Q2 2018.
Deal value, on the other hand, rapidly increased to $2.9 billion during the quarter, although two large transactions accounted for around 83% of this figure.
These included the acquisition of Ameriprise Financial’s Auto & Home Insurance business (AAH) by American Family Insurance for $1.05 billion, and the acquisition of Wells Fargo’s Institutional Retirement and Trust business by Principal Financial Group for $1.35 billion.
Liberty Mutual Insurance also agreed to acquire the global surety and credit reinsurance operations of AmTrust Financial Services in Q2 for an undisclosed value.
PwC noted that several deals during the quarter highlighted a persistent focus on the sale of non-core businesses as re/insurers increasingly begin to reassess their core capabilities and capital allocation strategies.