Global M&A rebounds, APAC outshines peers | Asian Business Review
, APAC
111 views
/Ryoji Iwata from Unsplash

Global M&A rebounds, APAC outshines peers

WTW said this trend was mainly seen in the W&I insurance market.

In 2023, global M&A activity experienced a significant downturn initially but showed resilience in the latter half of the year, but the Asia Pacific (APAC) region stood out for its robust activity.

Despite a drop in acquisitions compared to 2022, APAC acquirers closed 72 deals in H1 2023. Notably, APAC acquirers consistently achieved positive share price performance over nine consecutive quarters, outperforming their counterparts in North America and Europe.

This trend was reflected in the Warranty and Indemnity (W&I) insurance market, where insurer terms became more competitive, boosting the appeal of transactional risk insurance, WTW’s Global Transactional Risk Review and 2024 Outlook showed.

The competitive landscape in the W&I market persisted as insurers aimed to gain or retain market share. 

ALSO READ: Optimism remains despite high rates and M&A uncertainties: Clyde & Co.

Emerging markets and non-traditional transaction structures witnessed a surge in W&I insurance usage, while geopolitical concerns led insurers to focus on regional risk variations, impacting coverage and pricing.

Driven by decreased deal flow, W&I insurance pricing hit historically low levels in 2023. Coverage terms expanded, with insurers more willing to negotiate on previous exclusions, aligning with a broader risk acceptance strategy.

Looking ahead to 2024, the market anticipates a continuation of cautious optimism seen in the latter part of 2023. With ample liquidity, investors and corporates are expected to pursue quality transactions, sustaining the robustness of the W&I market. Continued innovation in underwriting practices is expected to address evolving market demands, including insuring hybrid risks.

Follow the links for more news on

Join Asian Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Chinese insurers deem it wise to move to alternative investments
Analysts see new regulations driving a conservative shift as insurers seek stability amidst volatile markets.
Insurance
Dharmais Cancer Hospital leads cancer treatment innovation in Indonesia
CEO Soeko Werdi Nindito Daroekoesoemo unveils advanced technology and seven flagship programmes for cancer treatment.
Is ‘Londonisation’ good for Asia’s M&A insurance market?
Industry experts dissect the region’s low usage rates for M&A insurance despite more industry players entering the field.
Blurring lines between online and offline retail in Asia Pacific
Foodpanda executive explains consistent service levels through efficient logistics and quality control measures.