Who's in the hunt? Insurance M&A in 2022

The hunt will continue into 2022 as players seek scale and diversification. Here's what we've heard from the front lines in the months running up to 2022:

SOMPO HOLDINGS: The Japanese-based re/insurance group sounds very active, bragging early December of several possible targets with price tags running into the hundreds of billions of yen. Scale and diversification are the battle cries at Sompo and officials vow to use the ¥600 billion ($5.3 billion) "actively." Signals were somewhat blurred on exact targets. Officials ballyhooed senior care and nursing operations, including the real data platform (RDP) tech element and a handful of tech initiatives, but also spoke to "new channels and new markets" for foreign insurance operations.

See our coverage:  Sompo hints at massive M&A deals for its $5.3bn war chest

GENERALI:  The Italian insurer has €3bn and a host of interests, officials said mid-December in laying out a fresh three-year plan. In insurance, Generali talks up hopes to "strengthen our leadership in Europe and our foothold in developing markets," Donnet said. Developing markets can mean central and eastern Europe or, more opportunistically, in Asian growth markets. Generali is feeling quite proud of its still-ongoing purchase of Cattolica Assicurazioni, a big enough bit to rule out further purchases on the home market. IN asset management, Generali will seek to build clout as a global player, making UK and US targets high on the ranking.

See our coverage:  Generali sets up €3bn war chest for M&A to build foothold in growing markets

Generali tweaks M&A outlook, Central Europe may trump ‘opportunistic’ view to Asia

ALLIANZ: Officials admit they've been a bit picky at times, but warn that the German insurer remains decisively on the prowl. "It is not like we are not looking at investments," CEO Oliver Bäte said during his company's early December Capital Markets Day. "In this current environment, we simply haven’t found a transaction that would fulfil our requirements." That calm (or rather that meanwhile focus on share buybacks) can change suddenly when the opportunity looks right. "We will be very disciplined in M&A. At any point in time it can be lumpy.” Allianz will restrict its view to growth options for its current corporate profile. Major transformational deals are ruled out, the CEO said.

See our coverage:  Allianz remains on the prowl for M&A targets: CEO Bäte

AJ GALLAGHER: As it has been in 2021, so shall it be in 2022: Gallagher wants to buy up as many mature small- to mid-sized brokerages as it can lay its hands on. Gallagher thinks that its toughest competition, even on many large accounts, is precisely amongst some well-established regional and local players, players that might enjoy some of the benefits of joining Gallagher's global team, officials argued for a mid-December investor day. It's not just the US; officials claim "really nice momentum in our M&A strategy outside the US."

See all our stories about Gallagher here.

TOKIO MARINE: The Japanese powerhouse would gladly jump at major deals to diversify its game, but suspects that most valuations are looking a bit pricey vis-a-vis its own preferred metrics, chief executive officer (CEO) Satoru Komiya told his company's Investor Day late November. "There is still room for global risk diversification," Komiya said.

See our coverage:  Tokio Marine would jump at major M&A deal to diversify its game, but valuations seem hefty: CEO

CHUBB: M&A sounds pretty implicit in the growth plan, if CEO Greenberg comments at the Q3 earnings calla re any measure. The purchase of Cigna operations in Asia got ballyhooed for size and conviction. "Our company has considerable earnings power and a patient hand to deploy capital effectively over time," Greenberg said late October. "We continue to build future revenue and earnings generation capacity."

See all our stories about Chubb here.

NN GROUP: The Dutch "would consider" another M&A deal on the pattern set in its purchase of Metlife assets, but spoke sufficiently heartily of organic growth options in its late November investor day to assume the M&A option will not be pushed at all costs. "The base case is really around organic growth," chief executive officer David Knibbe told participants.

See our coverage:  NN Group could pursue M&A on pattern of MetLife deal — but bullish on organic growth

AVIVA:  Not likely. Aviva is too fresh from restructuring disposals to think of turbo-accelerated growth, officials indicated in a November investor call. Aviva has ‘very high bar’ for M&A and is placing its bets on organic growth, CEO Amanda Blanc said.

See our coverage:  Aviva has ‘very high bar’ for M&A, CEO bets on organic growth

SCOR:  Not likely to happen, CEO Laurent Rousseau told an S&P event as recently as early November. And Rousseau is surprised others might feel otherwise: hard markets are for the grabbing, not for getting distracted in integrations. The loss of tax privileges for Bermuda-based entities could force some players to rethink ownership, though.

See our coverage:  Insurers may eschew M&A in hardening market as organic growth opportunities call: SCOR CEO

ZURICH:  Not so likely. "We are focused on doing the things that were part of the priorities we set out at end-2019; none of those priorities were M&A," Group Chief Financial Officer George Quinn told a mid-November investor call. "If [we see] the right thing at the right time and the right price, we have the flexibility to see if it makes sense, but it is not a major thing for us.

See all our stories about Zurich here.