Private Equity Interest Driving Activity in Insurance Deals Market: PwC 2024 Midyear Outlook Report

Private equity interest in the insurance deals market is on the rise, according to PwC’s 2024 Midyear Outlook Report. While other sectors are experiencing a lackluster deal market, the insurance sector is seeing steady activity, especially in the life insurance and annuity sector.

Mark Friedman, insurance deals leader at PwC U.S., highlighted the increase in transaction activity in the life and annuity space, with more capital being deployed in the insurance sector compared to other sectors facing growth headwinds.

From mid-November 2023 through April 2024, there were 145 announced insurance transactions totaling over $34 billion in deal value. While this represented a decrease in volume from the previous period, the value of the deals increased significantly.

Some of the notable deals during this period include Aon plc’s acquisition of NFP Corp. for $13.6 billion and Arch Insurance North America’s acquisition of Allianz’ U.S. MidCorp and Entertainment insurance business for $1.4 billion.

Private equity involvement in the insurance sector is expected to continue driving activity, with a focus on stable returns. In the property and casualty insurance sector, private equity is the largest investor in the brokerage space.

Friedman also highlighted the growing interest from Asian markets, particularly Japanese insurance companies seeking financial reinsurance through private equity-backed platforms. This trend is expected to continue as private equity asset managers look to aggregate assets at scale.

Overall, the insurance deals market is expected to remain active, with private equity playing a significant role in driving transactions and shaping the future of the industry.