Ishka Advisors
M & A Advisory
- M&A is quiet common in insurance as scale provides benefits. But investors tend to differentiate between good/bad M&A. In-market/bolt-on M&A is considered value creating whereas large transformational is not. This makes it crucial to consider value creating M&A as opposed to deploying excess capital to generate some excess returns.
- Examples of in-market consolidation are NN Group/Delta Lloyd, ASR/Aegon, Phoenix/Standard Life whereas transformational deals announced in recent past include AXA/XL. Bolt-on M&A’s are typically seen as neutral, though there is a share price overhang if any company has specific bolt-on M&A strategy.
- In past 20 years, Ashik has analysed the merits and demerits of most of the M&A’s done by listed insurers in Europe and thus could create value for insurers in selecting or not selecting any potential targets