(Re)in Summary
• Ardonagh Group’s AU$2.26bn (US$1.49bn) acquisition of PSC Insurance Group is the largest Q2 2024 APAC insurance M&A deal.
• The second-largest deal is Oversea-Chinese Banking Corp’s US$1.03bn offer to acquire the remaining 11.56% stake in Great Eastern Holdings Ltd.
• Australia and New Zealand led Q2 2024 with 10 out of 17 insurance M&A deals, including notable transactions by Gallagher and Howden Broking.
The Ardonagh Group’s pending acquisition of Australia’s PSC Insurance Group has been identified as the largest M&A insurance deal in APAC for Q2 2024, according to an analysis conducted by S&P Global Market Intelligence.
In May, the UK-based insurance broker entered into a scheme implementation deed to acquire all the issued ordinary shares of PSC Insurance for approximately AU$2.26bn (US$1.49 billion).
The pending transaction is the largest deal with a publicly disclosed value in Ardonagh’s history and represents its most significant investment in the Asia-Pacific market to date.
Analysts view the acquisition as a significant move that will provide Ardonagh with a platform to expand in the Asia Pacific region. The deal, pending regulatory and shareholder approval, is expected to complete in late September 2024.
Following the acquisition, Ardonagh plans to merge PSC Insurance’s operations in Australia and New Zealand with Envest. The combined entity is expected to become one of the largest privately owned insurance distribution platforms in Australia.
The second-largest deal during the period was Oversea-Chinese Banking Corp’s US$1.03bn offer to acquire the remaining 11.56% stake it does not already own in Singapore-based Great Eastern Holdings Ltd.
The bank has increased its total shareholding in Great Eastern to 93.32% from 88.44% through a voluntary unconditional general offer, which closed on July 12. Great Eastern clarified in a news release that the bank’s general offer and the associated suspension of trading, which was due to the bank’s ownership stake exceeding 90%, have “no impact whatsoever” on its insurance business and operations.
The third-largest deal was the planned sale of Suncorp’s life insurance business in New Zealand, Asteron Life, to Resolution Life. Resolution agreed to acquire Asteron for NZ$410m (US$245.8 million), with the transaction expected to complete within nine months.
In fourth place, AUB Group Ltd. agreed to acquire a 70% equity stake in Pacific Indemnity Underwriting Solutions, a specialty underwriting agency, for US$93.4 million. This transaction closed on July 1.
Australia and New Zealand saw the highest number of M&A transactions in the second quarter, with 10 out of 17 total insurance deals in the quarter occurring in these countries.
Noteworthy deals include Gallagher acquisition of Australia-based Prasidium Credit Insurance, completed in April, and Howden Broking’s acquisition of New Zealand-based Bridges Insurance Services, which closed in June.
In Japan, three deals were recorded during the period, including Alpha Club Musashino’s acquisition of Kufu Small Amount & Short Term Insurance from Kufu Co. Inc. in April and S.T. Corp.’s acquisition of Chardan Co. Ltd. in May, which closed on July 1.
India also saw three significant insurance deals, including Arihant Capital Market’s pending divestment of a 100% equity stake in Arihant Insurance Broking Services, expected to complete by Dec. 31. UK-based Lockton agreed to acquire Arihant Insurance in June under a share sale and purchase agreement.
In Q1, Generali led Asia Pacific insurance M&A activity with its CNY774m (US$112m) bid for a 51% stake in Generali China Insurance Co. Ltd. Brokers dominated the M&A landscape with 15 deals, and Southeast Asia led in transaction volume with six out of 21 deals recorded.