Insurance companies focus M&A on assets that complement business models or augment digital capabilities.
Global economic activity may be slowing, but insurance executives still see pockets of growth in many of the major economies. In response, they’re planning to pursue M&A that will complement current business models, or help them acquire technology or new production capabilities to accelerate growth, according to the 21st edition of the EY Global Capital Confidence Barometer.
Confidence in a growing economy remains, but optimism in fundamentals begins to soften
Despite uncertainties arising from tariff and trade issues, regulatory challenges, as well as global and local political uncertainties, nearly three-quarters (73%) of insurance executives believe the global economy is continuing to grow.
With such continued optimism, fewer than one-third of insurance executives expect an economic slowdown in the near to mid term. However, as levels of confidence across macroeconomic fundamentals stabilize more than improve, now is the time for companies to reassess their portfolio vulnerabilities, and optimize their capital structures to safeguard against potential threats. Almost half (49%) of insurance executives have plans to outsource or divest a portion of their current operations.