MEA Insurance M&A activity falls in 2021
After the year 2020, which saw a total of 32 deals, M&A activity in the Middle East and Africa dropped back with only five completed transactions in the first half of this year, according to Clyde & Co’s Insurance Growth Report mid-year update. These all involved Middle East acquirors – two from Israel and one each from Egypt, Saudi Arabia and the UAE.
Peter Hodgins, corporate insurance Partner at Clyde & Co in Dubai, said: “M&A activity in the Middle East insurance markets continued at modest levels during the first half of 2021. Activity appears to have been opportunistic with local investors capitalising on the strategic decision of some European insurers to scale back operations in the region. We expect further developments later in the year 2021, as insurers seek to focus on core lines of business / specific regional markets where there is perceived scope for future growth. Consolidation remains high on the agenda, particularly in the larger insurance markets of the UAE and Saudi Arabia, driven by high levels of competition and ongoing regulatory developments. There has also been a significant volume of transactions involving intermediaries and insurance support businesses, with notable interest in health insurance third party administration businesses.”
Mergers and acquisitions (M&A) in the global insurance industry dropped back slightly in the first half of 2021 with 197 completed deals worldwide, down from 206 in the second half of 2020 and 201 at the same point last year, according to
Driven by robust activity in the US, the Americas led the way with 116 deals, up from 102, pushing M&A in the region to its highest level since 2015. After a steep drop in transactions in 2020, Europe held steady in H1 2021 with 51 completed deals, up one on the previous six-month period. The UK was the leading European country – and second most active worldwide behind the US – ahead of Spain and Germany.
In contrast, Asia Pacific saw completed deals fall from 37 to 18 – the lowest level since the beginning of this report in 2011 – as post-pandemic and geo-political uncertainty weighed heavy on deal-makers. Japanese acquirors were again the most active compared to 2020, ahead of India and Australia.
