Generali led APAC insurance mergers and acquisitions (M&A) activity for the first quarter of the year, according to an analysis by S&P Global Market Intelligence. S&P’s analysis includes whole, mintory and asset deals where the targeted insurance broker or underwriter was located in Asia Pacific, with a transaction date within the first quarter of 2024.
The Italian insurer’s bid to acquire a 51% stake in Generali China Insurance Co. Ltd. for approximately CNY774m (US$112m) was the largest deal of the period, according to S&P’s numbers.
The transaction also marked another milestone — it made Generali the first foreign entity to gain a controlling interest in a Chinese property and casualty insurer through a public auction mandated by a single state-owned entity.
The second significant transaction of the quarter was Pepper Money Ltd.’s exercise of a call option to acquire the remaining 35% share in Stratton Finance Pty. Ltd., an Australia-based firm, for US$27.4m. This move, completed on 28 March, builds on Pepper Money’s initial acquisition of a 65% stake in July 2022.
The acquisition of Beijing Nova Insurance Services Ltd. by Nova Insurance Consultants Ltd. for CNY143m (US$20.7m) rounded out the top three deals. Post-transaction, Beijing Nova will operate as an indirect wholly owned subsidiary of FSE Lifestyle Services Ltd, S&P noted.
South Korea hosted the fourth-largest deal with GeneXon Co. Ltd.’s pending acquisition by Chungho ICT Co. Ltd. for US$7.5m, expected to close on 10 May. Additionally, Tian Ruixiang Holdings Ltd.’s expansion into the Hong Kong insurance brokerage market was marked by its acquisition of Peak Consulting Services Ltd. for US$1.5m.
In terms of industry segments, brokers dominated the activity, with 15 M&A deals, eclipsing Property and Casualty carriers with four and Life and Health insurers with two.
Other notable transactions include FWD Group which increased its stake in FWD Takaful to 70%, becoming the majority shareholder. In Vanuatu, Tower Ltd. agreed to sell its Tower Insurance (Vanuatu) subsidiary to Capital Insurance Group for NZ$1.6m (US$962.5m) as part of Tower’s Pacific operations streamlining efforts.
Broken down by region, Southeast Asia led in transaction volume in Q1 2024, with six out of 21 deals recorded in the first quarter. Looking at Q1 activity over the last five years, Southeast Asia was again at the top with 32 transactions, followed closely by Australia & New Zealand with 30.
