APAC insurance M&A activity slows in Q3

Two major transactions faced regulatory scrutiny during the quarter.

Mergers and acquisitions (M&A) in the Asia-Pacific insurance sector inched down in the third quarter of the year, with only 16 deals recorded versus the second quarter’s 19 deals, revealed S&P Global Market Intelligence.

Australia, previously active in insurance M&A, saw reduced activity, with only two deals recorded: PSC Insurance Group Ltd.'s acquisition of Eastern Prudential Insurance Group Pty. Ltd. and Multi Secure Insurance Solutions Pty. Ltd.'s acquisition of Acacia Insurance & Risk Services Pty. Ltd.

India and Japan emerged as the most active markets, with three deals each. In India, insurance broker transactions led the activity, including Paramount Health Services & Insurance TPA Pvt. Ltd.'s pending sale to Medi Assist Insurance TPA Pvt. Ltd. for $37.2m.

In Japan, all three deals involved brokers, with ZIGExN Co. Ltd.'s acquisition of a 66% stake in Hoken Mammoth Co. Ltd. for $4.5m standing out.

South Korea recorded two major transactions: Woori Financial Group Inc.'s bid to acquire Tong Yang Life Insurance Co. Ltd. and Construction Guarantee Cooperative's minority stake sale, ranking amongst the largest deals in the region.

Regulatory challenges for the largest deals
Two major transactions faced regulatory scrutiny during the quarter.

In Singapore, the government blocked Allianz SE's planned $1.65b acquisition of a 51% stake in Income Insurance Ltd., citing public interest concerns.

Officials highlighted a proposal for Income Insurance to return S$1.85b in cash to shareholders within three years, raising questions about its ability to maintain affordable policies with reduced capital.

Allianz stated it would reassess the situation.

In South Korea, regulators scrutinised Woori Financial Group's planned acquisition of Tong Yang and ABL Life Insurance Co. Ltd. due to concerns over risk management.

Financial Supervisory Service Governor Lee Bok-hyun questioned whether Woori had adequately considered the risks of acquiring life insurers.

Whilst these regulatory challenges pose hurdles, market observers note that strong financial conditions and strategic adjustments may still enable some deals to proceed.

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APAC Insurance M&A Deals

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