Expect to see an uptick in M&A activity in 2023: PwC

A more disciplined approach to deals is expected in financial services M&A in 2023, with ESG and regulation influencing investment decisions, and portfolio optimisation and digitalisation remaining strategic priorities.

A new PwC report, called PwC 2023 Global M&A Industry Trends Outlook, has forecast a rise in global mergers and acquisitions with insurance brokers strongly affected, as insurers continue to battle rising inflation.

Corporations can expect more ESG influence on investment decisions and areas of focus for M&A owing to regulation and mounting pressure from stakeholders, the report suggested.

Companies will seek more strategic partnerships and consolidation opportunities to boost digital capabilities, counter the disruption from platforms and fintechs, and address sustained pressure from regulators.

The report highlighted property/casualty insurers in particular have not been able to increase premiums they charge in line with inflation, and personal insurance claims are being driven higher by inflation.

Matt Britten, partner, insurance, PwC Bermuda, said: “The need to accelerate transformation for insurers is critical. “In this challenging environment, it is time for insurers to clearly define their core business and decide which business areas will drive future growth and should be retained, and which to exit or dispose of, with the aim of deriving the greatest value from the divestment.”

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