Morgan Stanley tops H1 insurance underwriter M&A league table

Morgan Stanley took the top spot on S&P Global Market Intelligence's insurance underwriter M&A league table for the first half of 2023, thanks to its role in two major deals announced in May.

The first of those transactions, Security Life of Denver Insurance Co.'s acquisition of Farmers New World Life Insurance Co.'s in-force individual life insurance business, was announced May 17. The deal is valued at $1.8 billion and is expected to close by the end of the year.

The second deal, RenaissanceRe Holdings Ltd.'s planned acquisition of Validus Reinsurance Ltd. and Validus Specialty LLC's treaty reinsurance business from American International Group Inc., was announced just five days later. The deal is valued at $2.99 billion and is expected to close during the fourth quarter.

Chaffe & Associates Inc. and KeyBanc Capital Markets Inc. jointly filled the second spot in the insurance underwriter M&A league table in the first half, thanks to their roles in a proposed acquisition by Elevance Health Inc.

The investment bank and advisory firm both advised on Elevance's $3.5 billion purchase of Blue Cross Blue Shield of Louisiana. The transaction, announced Jan. 23, will likely be among the largest insurance deals of 2023. The largest insurance deal in 2022 was Berkshire Hathaway Inc.'s $11.57 billion purchase of Alleghany Corp.

Morgan Stanley was also among the investment banks that worked on the most deals involving insurance underwriters during the first half of the year, sharing pole position with J.P. Morgan Securities LLC, RBC Capital Markets LLC, Propel Advisory Group Inc. and Piper Sandler & Co.

Legal advisers

With four deals under its belt, Debevoise & Plimpton LLP set the pace as legal advisers on insurance underwriter deals.

The second slot was filled by Sidley Austin LLP and Mayer Brown LLP, which worked on three deals each during the first half of the year.

With work on two deals each, Faegre Drinker, Morgan Lewis & Bockius LLP, Schulte Roth & Zabel LLP and Skadden Arps Slate Meagher & Flom LLP jointly filled fourth place.

Although not topping the deal volume chart, Sidley Austin topped the deal value chart with a total of $4.79 billion across three deals. Debevoise & Plimpton LLP came next, with $4.05 billion across four deals.

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Broker deals

Morgan Stanley and Truist Securities Inc. jointly took the top spot for financial advisers working on insurance broker deals. The two companies worked on a deal involving an investor group comprised of Mubadala Investment Co. PJSC and Stone Point Capital LLC acquiring 20% of Truist Insurance Holdings Inc. Announced Feb. 16, the $1.95 billion deal closed April 3.

Next was Evercore Inc., which acted as a financial adviser on American Financial Group Inc.'s $240 million cash acquisition of Crop Risk Services Inc. from American International Group Inc. The deal, announced on May 2, closed July 3.

Having worked on 48 deals, Sica Fletcher LLC was financial adviser on the largest number of insurance broker deals during the first half. Marsh Berry & Co. Inc. took the No. 2 position by advising on 27 insurance broker deals during the first half of the year. TAG Financial Institutions Group LLC advised on nine deals during the first half of the year, good enough for the third spot.

Cleary Gottlieb Steen & Hamilton LLP, Davis Polk & Wardwell LLP and Simpson Thacher & Bartlett LLP jointly shared the top position in terms of legal advisers on insurance broker deals by deal value, having advised on the partial investor group acquisition of Truist Insurance Holdings.

The sole firm to advise on more than two deals during the first quarter was Giordano Halleran & Ciesla PC, which worked on 12 deals.

Insurtechs

Alvarez & Marsal Holdings LLC was the only firm to act as a financial adviser for an insurtech deal, working on a single transaction during first half of 2023. Similarly, Sheppard Mullin Richter & Hampton was the sole law firm to serve as a legal adviser for an insurtech deal.