Britain and Europe and political uncertainty to suppress the European insurance
Rating agency AM Best said Monday that Britain's withdrawal from the EU and European political uncertainties could curb the European insurance industry's M & A activity this year.
AM Best said that at least one of Europe's top insurers last year was about $ 5 billion in mergers and acquisitions, down 72% and 76% from 2015 and 2014 respectively.
The rating agency said that in 2016, negative interest rates in some European countries reflected uncertain economic prospects, which inhibited the M & A transactions, because the combined business outlook is not clear.
In addition, due to the rise in the valuation of the UK stock market, although the pound in the British referendum decided to fall after the European decline, but the decline is not enough to make British insurers for foreign buyers in terms of cheap.
(2017) is unlikely to touch the peak of mergers and acquisitions in 2014 and 2015, "said Anthony Silverman, senior financial analyst at AM Best.
"Competitive concerns may ultimately limit the space for large-scale mergers and acquisitions in European countries," the rating agency said.
AM Best said that at least one of Europe's top insurers last year was about $ 5 billion in mergers and acquisitions, down 72% and 76% from 2015 and 2014 respectively.
The rating agency said that in 2016, negative interest rates in some European countries reflected uncertain economic prospects, which inhibited the M & A transactions, because the combined business outlook is not clear.
In addition, due to the rise in the valuation of the UK stock market, although the pound in the British referendum decided to fall after the European decline, but the decline is not enough to make British insurers for foreign buyers in terms of cheap.
(2017) is unlikely to touch the peak of mergers and acquisitions in 2014 and 2015, "said Anthony Silverman, senior financial analyst at AM Best.
"Competitive concerns may ultimately limit the space for large-scale mergers and acquisitions in European countries," the rating agency said.