Clyde & Co’s Post

As we approach Q4, our global Corporate and Advisory team has shared their mid-year update for the biannual Clyde & Co Insurance Growth Report, offering a deeper insight into how insurers are balancing risk and opportunity in what remains an uncertain trading environment. Though M&A activity is slow thanks to acute political uncertainty, heightened interest rates and inflation, the pieces of the puzzle needed to bring it back to life may be falling into place. Download the report below to find out more.

Our Insurance Growth Report 2024 mid-year update is now live. View our report and look at how the insurance M&A activity has progressed over the first half of 2024 👉 https://bit.ly/4gbb8p4 #growthreport2024 #insurance #mergersandacquisitions

𝐓𝐰𝐞𝐥𝐯𝐞 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐒𝐧𝐚𝐩𝐬𝐡𝐨𝐭 - 𝐄𝐪𝐮𝐢𝐭𝐲 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐒𝐞𝐜𝐭𝐨𝐫 𝐒𝐡𝐢𝐧𝐞𝐬: 𝐏𝐫𝐮𝐝𝐞𝐧𝐜𝐞 𝐏𝐚𝐲𝐬 𝐎𝐟𝐟 Insurance equity performance in May defied the typically weak seasonality of the post-dividend lull (during May the sector underperformed the broader market 10 out of the last 15 years), and rebounded after a lackluster April. In the first five months of 2024, performance was up 13.7% and insurance ranked between the three best performing sectors in Europe. While from a global standpoint the real stars were Japanese insurers, in Europe reinsurance stocks continue to lead the way, posting solid gains both year-to-date and in May. The management teams of global reinsurers continue to highlight their focus on maintaining prudent reserving and rigorous underwriting standards, with some of them even indicating that they have reached the maximum level of cautiousness that can be built into their reserving. While this prudence and reserve buffers cannot eliminate the risk of higher than estimated claims, they allow companies to better absorb such impacts. This financial strength should ultimately help to reduce earnings volatility and provide a more stable outlook for investors. With this in mind, we flag that dividend yields in the sector remain attractive, averaging around 6%. Results and then earnings distribution to shareholders could benefit from the releases of reserve buffers, particularly if 2024 will show a benign overall claim environment. #equity #insurance #investmentopportunity

How do insurers and reinsurers feel about their capital modelling capabilities in an ever-changing landscape? Join me, along with Raluca Stefan and Rajiv Jethwa on Thursday 23 May (10:00 am UK) as we delve into the results of our 2024 capital modelling survey to explain current processes in the market and ways in which they're looking to improve. During the webinar we will explore: Capital modelling processes Model validation Evolving regulations Emerging risks Sign up here: https://lnkd.in/eMkE5BCA #insurance #capitalmodelling

How do insurers and reinsurers feel about their capital modelling capabilities in an ever-changing landscape? Join me, along with Raluca Stefan and Vaibhav Agarwal FIA FRM on Thursday 23 May (10:00 am UK) as we delve into the results of our 2024 capital modelling survey to explain current processes in the market and ways in which they're looking to improve. During the webinar we will explore: Capital modelling processes Model validation Evolving regulations Emerging risks Sign up here: https://lnkd.in/eMkE5BCA #insurance #capitalmodelling

After a successful 2023, the insurance-linked securities sector needs to show it can produce sustained returns on equity to its investors, according to Kathleen Faries, Artex Risk Solutions. Read the article for more: https://ow.ly/ipMc50R7CzC #Bermuda #Insurance #ILS

The Lockton #Secondaries team had a good day out yesterday at the #SecondariesSummit2024. Sentiment in the sector remains very positive. Despite continued concerns around under capitalisation, deal volume is expected to reach $150bn this year, a new record. What more, the huge amount of unrealised NAV in the PE market, along with changing attitude towards liquidity needs in the typically longer investment horizon assets (Infra, RE, credit etc) is set to drive this number higher over the coming years, with 2-3x being seen as “conservative”.    Pleased also to hear that the use of #WarrantyandIndemnity insurance on these transactions, in particular GP Leds, is on the rise, "promoting a frictionless process". To go with the risk transfer mechanism, reducing the chance of damaging commercial relationships and removing the opportunity cost of escrow/holdback, W&I insurance is a great tool to use on these transactions. Let us know if you want to hear more. Joe Colgan-Bevan, Ross Lima, George Apperly, Matthew Heinz

Our 2024 Mid-Year Outlook for global M&A trends in the financial services industry is out. #Insurance M&A is expected to remain resilient in the second half of 2024, with #brokerage deals and #divestitures of non-core life and annuity assets bolstering activity. Read more: https://pwc.to/4eouWV8 #PwCDeals #reinsurance

Click to watch, Pushing Back the Risk Frontier: How Insurers Are Co-Opting the Insurtech Playbook, here: https://bit.ly/3YpYsUw John Weber sits down with Arun Balakrishnan from Xceedance to revisit past conversations from the series and gain fresh insights into the Insurtech revolution. Watch and listen as they examine the current investment outlook and review the key factors shaping today’s insurance investment environment. #artificialintelligence #insurance #insuranceindustry #investment #insurers

Access here: https://lnkd.in/e8T2C8jV US #insurers' income from private equity investments declined for a second straight year, to $7.7 billion in 2023, down from $10.2 billion in 2022, despite a rise in holdings. #insurance #privateequity #insuranceindustry