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Article: Capital crunch expected to curb consolidation in reinsurance; Some M&A deals possible as reinsurers search for economies of scale, top-line growth amid soft market conditions.(Spotlight: Reinsurance: Trends and Issues)
- Article from:
- Business Insurance
- Article date:
- October 27, 2008
- Author:
CopyrightCOPYRIGHT 2008 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: JUDY GREENWALD
Reinsurance market conditions may be ripe for an increase in mergers and acquisitions, but financial market conditions may slow down any consolidation, several experts say.
The desire for economies of scale and growth could still drive some M&A activity in the near term, say some.
But others say reinsurers may be too absorbed in their own issues to look elsewhere, and the limited availability of capital will at least temporarily dampen dealmaking.
Michael D. O'Halleran, executive chairman of Aon Re Global in Chicago, whose firm is completing a $1.75 billion acquisition of London-based Benfield Group Ltd. (BI, ...