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P&C CFOs Expect Increase in M&As

P&C CFOs Expect Increase in M&As

While chief financial officers of property & casualty (P&C) insurers report different expectations based on the their view of the direction of the overall property market, most agree that the current conditions will lead to a spike in M&As.

According to the recent P&C CFO Survey from Towers Watson, a professional services company, responding finance chiefs said that the ultimate outcomes for the property market could include changing rate levels or higher financial performance, as well as more mergers and acquisitions.

"CFOs are anticipating winners and losers as a result of the soft market we've been through, and are predicting that those companies that do not emerge in a strong financial situation could be targets of an acquisition," Bruce Fell, managing director of Towers Watson's Risk Consulting and Software business, said in a release. "This could change the landscape of the market as the stronger companies increase market share."

Reuters reports that United Technologies Corp. is one company not waiting any longer to see how the market plays out, as it recently reached a deal to acquire aircraft component manufacturer Goodrich Corp. for $16.5 billion in cash.

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