OLDWICK, N.J.--(BUSINESS WIRE)--In this A.M.BestTV episode, Catherine Thomas, senior director of analytics, A.M. Best, reviews the strategies buyers are following in selecting insurance acquisition targets and some of the post-acquisition issues that can undermine deals. Click on http://www.ambest.com/v.asp?v=europeanmanda718 to view the entire program.
“The drivers for a company to acquire another company are very diverse,” says Thomas. “In the current very competitive operating environment, there is a perceived need to build scale and relevance, particularly in the reinsurance sector, which is under pressure from alternative capital.”
Thomas also spoke about how companies are using different strategies and routes to integrate businesses post-acquisition.
“The methods being used tend to relate back to the original motivation for the deal. For example, if you see similar businesses merging, the intention here tends to be improving relevance and scale.…On the other hand, companies that purchased a quite different business to that currently underwritten by the buyer, tend to see that the acquired management team remains in place and the takeover target maintains a significant degree of independence,” she said.
To access a copy of this briefing, titled, “M&A Drivers Set to Remain, Fuelling Further Insurance Deals”, visit http://www3.ambest.com/bestweek/purchase.asp?record_code=273972.
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