M&A Deals in Insurance IT and Services: 2006
AbstractBoston, MA, USA March 22, 2007
The strong market for acquisitions continues, fulfilling Celent's predictions in May 2006.
In a companion to its recent report on banking services M&A deals, Celent has published a new report examining approximately 70 recorded M&A deals in insurance brokerage, services, and technology in 2006 which finds increased activity and valuation levels.
"Driven by an influx of private equity, the need of mature companies to buy growth, and the desire to expand capabilities and solution offerings without long and protracted R&D processes, the level of M&A activity across services and technology for insurance continues to grow," says Matthew Josefowicz, managing director of Celent's insurance practice and primary author of the report.
The report revisits Celent's May 2006 predictions about consolidation in the insurance software sector. As projected, deal volume for technology specifically has grown to nearly 20 significant deals, which the greatest activity concentrated in the policy administration system area.
"There are no signs of this pace slowing in 2007," notes Josefowicz. "Already this quarter we've seen more than 10 deals by the three most active brokerage acquirers of 2006, Arthur J. Gallagher, Brown & Brown, and Hilb, Rogal & Hobbs. We've also seen significant insurance-related technology acquisitions by Skywire, Hewlett-Packard, Thomson, and Pitney-Bowes. And private equity firms are looking at the space with a new eye."
The 20 page report includes 10 figures and tables.
A table of contents is available online.
Members of Celent's Property/Casualty Insurance and Life/Health Insurance research services can download the report electronically by clicking on the icon to the left. Non-members should contact firstname.lastname@example.org for more information.
Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].
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Table of ContentsBoston, MA, USA March 22, 2007
|Deal Flow in Financial Services||5|
|Insurance Deal Landscape||10|
|Revisiting Celent's 2006 Predictions for the Insurance Software Landscape||15|
|Objectivity and Methodology||19|