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    Mergera & Acquisitions in Insurance

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    ssiyal840
    The document discusses mergers and acquisitions (M&A) in the insurance industry. It provides definitions and differences between mergers and acquisitions. It then discusses M&A activity in insurance since the 1990s, with the US and UK leading activity. Recent examples of M&A in insurance are provided, including AIG's $35.5 billion sale of its Asian life unit to Prudential, and AIG's $15.5 billion sale of its American Life Insurance Co. unit to MetLife. The document concludes that India's insurance sector is likely to see consolidation as regulators finalize M&A guidelines.

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    Mergera & Acquisitions in Insurance

    Uploaded by

    ssiyal840
    185 views12 pages
    The document discusses mergers and acquisitions (M&A) in the insurance industry. It provides definitions and differences between mergers and acquisitions. It then discusses M&A activity in insurance since the 1990s, with the US and UK leading activity. Recent examples of M&A in insurance are provided, including AIG's $35.5 billion sale of its Asian life unit to Prudential, and AIG's $15.5 billion sale of its American Life Insurance Co. unit to MetLife. The document concludes that India's insurance sector is likely to see consolidation as regulators finalize M&A guidelines.

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    The document discusses mergers and acquisitions (M&A) in the insurance industry. It provides definitions and differences between mergers and acquisitions. It then discusses M&A activity in insurance since the 1990s, with the US and UK leading activity. Recent examples of M&A in insurance are provided, including AIG's $35.5 billion sale of its Asian life unit to Prudential, and AIG's $15.5 billion sale of its American Life Insurance Co. unit to MetLife. The document concludes that India's insurance sector is likely to see consolidation as regulators finalize M&A guidelines.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    185 views12 pages

    Mergera & Acquisitions in Insurance

    Uploaded by

    ssiyal840
    The document discusses mergers and acquisitions (M&A) in the insurance industry. It provides definitions and differences between mergers and acquisitions. It then discusses M&A activity in insurance since the 1990s, with the US and UK leading activity. Recent examples of M&A in insurance are provided, including AIG's $35.5 billion sale of its Asian life unit to Prudential, and AIG's $15.5 billion sale of its American Life Insurance Co. unit to MetLife. The document concludes that India's insurance sector is likely to see consolidation as regulators finalize M&A guidelines.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 12

    Outlin

    e
     Insurance
     Merger, Acquisition,
    Takeover & Amalgamation
     M&A In Insurance
     Recent M&A in Insurance
     Insurance M&A scenario in
    India
    Insurance

     Insurance is pooling of risks.

     Insurance, whether life or non-life, provides


    people with a reasonable degree of security and
    assurance that they will be protected in the
    event of a calamity or failure of any sort.
    Merger And Acquisition
    Merger - Combination of two or
    more companies into a single
    company where one survives and
    the others lose their corporate
    existence .

    Acquisition - Also
    known as a takeover, is
    the buying of one
    company (the ‘target’) by
    another.
    Difference

    Merger Acquisition

    Two firms are combined One firm buys another


    on a relatively co-equal firm
    basis
    Parent stocks are usually  Can be by means of
    retired and new stock controlling share, a
    issued majority, or all of the
    target firm’s stock
     Name may be the
    original or a combination  Can be friendly or hostile

    One of the partners take  Usually done through a


    over the dominant tender offer
    management
    Modes of Mergers &
    Acquisitions
    M & A in
    Insurance
     Grown since early 1990s.
     Mainly due to opening of
    financial sectors and economic
    reforms.
     Both within border and cross
    border mergers.
     USA and UK lead the list of countries that feature among
    the top in terms of insurance mergers and acquisitions.
     Other countries with mergers and acquisitions in the
    insurance sector include Netherlands, France, Italy, Germany,
    Japan, Switzerland, Canada, Australia, Belgium, Spain and
    Sweden.
    Comparative Figures in
    Insurance M & A during the
    period 1990 -2003
    Number of Value
    Country
    M&A ( in million dollars)
    USA 606 210167
    UK 217 67586
    Germany 91 19870
    Italy 82 19912
    Spain 73 3116
    France 64 24551
    Canada 62 9700
    Netherlands 58 25440
    Australia 48 4778
    J apan 47 17807
    Belgium 30 3739
    Switzerland 21 11451
    Sweden 14 2806
    TOTAL 1413 420922
    AIG agrees to $35.5 billion unit
    sale to Prudential

     American International Group Inc agreed to a $35.5 billion


    sale of its Asian life insurance unit to Britain's Prudential Plc on
    March 1,2010.
     Prudential pays about $25 billion in cash and the rest in
    equity, the sources said.
     It would be one of the largest overseas deals to date for a
    British firm and make Prudential one of the biggest
    insurers in Southeast Asia.
     "This transaction offers the opportunity to bring together two
    leading companies, positioning the combined group to capture
    the future growth opportunity in Asia," Prudential said in the
    statement.
    AIG selling ALICO to MetLife for $15.5
    billion
     MetLife said Monday that it would pay AIG
    $6.8 billion in cash and about $8.7 billion in
    equity for the American Life Insurance Co.
    unit.
     ALICO sells life, accident and health
    insurance as well as retirement and wealth
    management products in more than 50
    countries.
     The deal will help MetLife, to diversify
    revenue sources by product, distribution and
    geography.
    Insurance M&A
    scenario in India

     Insurance sector likely to witness


    consolidation.
     IRDA is in the process of finalizing guidelines
    for mergers and acquisitions in the insurance
    space.
     It will help companies to fund their expansion
    plans to tap the huge potential for insurance
    products in the country.

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