Insurance broker deal activity slowed sharply in the first half of 2022 from the latter half of 2021, according to an S&P Global Market Intelligence analysis.
Fourth quarters are typically busy, but the final three months of 2021 were particularly active, with more than 400 insurance broker deals announced in the period. Deal volume slowed sharply as the calendar turned, as there were 176 and 190 insurance broker deals announced in the first and second quarters of 2022, respectively.
Overall, the first half of 2022 saw 424 insurance deals announced, compared to 504 in the first half of 2021. Insurance underwriters accounted for 58 transactions in the first half of 2022 versus 77 in the first half of 2021.
M&A activity ticks up in property and casualty sector in Q2
The number of transactions in the property and casualty and multiline sectors increased slightly year over year in the second quarter to 15, but the combined value rose sharply to $1.23 billion from $280.0 million.
The life and health space logged five transactions in the second quarter of 2022, down from nine in the second quarter of 2021. Values for those deals were not disclosed.
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Noteworthy deals
The largest insurance transaction announced in the second quarter was White Mountains Insurance Group Ltd.'s deal to sell NSM Insurance Group Inc. to The Carlyle Group Inc. in a transaction valued at $1.78 billion. The deal, first disclosed in May, is expected to close during the second half.
Also in May, Jab Holding Co. SARL and Fairfax Financial Holdings Ltd. formed a strategic partnership that will see Jab subsidiary Independence Pet Group buy Fairfax's stakes in Crum & Forster Pet Insurance Group and Pethealth Inc., including their global operations, for $1.40 billion.
Another transaction announced during the second quarter that made news was the Brickell PC Insurance Holdings LLC's planned acquisition of the remaining shares it did not already own in Randall & Quilter Investment Holdings Ltd., which recently changed its name to R&Q Insurance Holdings Ltd.
A month after that deal was announced, Brickell alleged that R&Q had breached terms of the agreement and terminated the deal. R&Q later agreed to pay approximately $1.3 million to Brickell as a contribution toward costs under a settlement agreement without any admission of liability by either party.
