Insurance M&A activity increases in 2011, but will the momentum continue?
Consistent with our expectations, mergers and acquisition (M&A) activity in Canada's insurance industry continued to increase in 2011 as more carriers and brokers sought to expand market share, drive premium growth, and seek economies of scale. A continued low- interest rate environment and sluggish improvements in soft premium rates continued to squeeze margins and drive many players to seek scale. If more deals could be found, chances are more deals could have taken place.
Insurance Review: A Canadian Perspective 1