London Market's M&A Activity Slows Despite Inigo Deal
The London insurance market, also known as the London Market, has seen a flurry of merger and acquisition (M&A) activity recently, with the $1.7bn acquisition of London Market insurer Inigo being the latest deal. However, analysts at Autonomous believe that the prospects for further M&A in the sector remain limited due to a lack of buyers, poor timing, and high acquisition costs.
Despite the recent activity, Autonomous maintains that a major deal, such as the acquisition of a large London Market company like Lancashire, would be seen as a bold and ambitious move in the current environment. The Inigo deal is not expected to have a significant impact on other London Market companies in Autonomous' portfolio.
Looking ahead, Autonomous suggests that the next M&A transactions involving specialized London insurance companies could be expected by the end of 2025, as similar transaction closings in the insurance and finance sectors are anticipated around that time frame. The Inigo deal may raise prospects of M&A for other London Market companies like Lancashire, Beazley, Conduit, and Hiscox. However, it is important to note that this does not necessarily signal a widespread return to M&A for all London-listed specialty re/insurers.
The Inigo acquisition has been described as bearish for the UK stock market, indicating a tepid market reception for a potential initial public offering (IPO). While the London re/insurance market has seen several M&A deals recently, it remains to be seen whether this trend will continue and impact all London-listed specialty re/insurers.
Read also:
- Planned construction of enclosures within Görlitzer Park faces delays
- Controversy resurfaces following the elimination of diesel filter systems at Neckartor: A renewed conflict over the diesel restriction policy
- Perennial Seeks Growth Marketing & GTM Associate for Carbon Removal Mission
- OSM Launches India's First Autonomous Electric Three-Wheeler
