Europe

Insurers eyed for takeover

European insurance companies are shaping up to be attractive takeover targets for cash-rich Japanese insurers and private equity houses, according to merger & acquisition advisers at KPMG. Japanese firms are starting to expand outside their domestic market and opportunities for mergers and acquisitions are arising from the current global credit crisis. KPMG said Western non-life insurers have seen their equity value almost halve in value in the space of six months, creating an opportunity for potential acquirers. “Japanese insurers…are now realising the time is right to diversify internationally, illustrated recently by Tokio Marine acquiring insurers in the UK and the US,” said Mark Flenner, head of non-life insurance at KPMG corporate finance. Mr Flenner said “brave” private equity houses are also considering the potential of non-life insurance acquisitions. “Private equity houses are under increased pressure to invest their large war chests and insurance is a compelling proposition,” Mr Flenner said.