Asia-Pacific’s 2024 deal activity ‘sluggish’

The Ardonagh Group acquisition of PSC Insurance was the largest deal.

The number of insurance-related mergers and acquisitions in Asia-Pacific dropped to 77 deals in 2024, down from 97 in 2023—the lowest annual total since at least 2020, according to S&P Global Market Intelligence analysis.

The Ardonagh Group Ltd.'s acquisition of PSC Insurance Group Ltd. was the largest insurance deal announced in the Asia-Pacific region in 2024 based on transaction value.  

The UK-based insurance broker agreed in May 2024 to acquire all of PSC Insurance's issued ordinary shares for A$6.19 per share. 

The $1.49b transaction, completed in October, became the largest publicly disclosed deal in Ardonagh’s history. The acquisition created a privately owned insurance distribution firm in Australia with A$3.3b in gross written premiums annually.  

The second-largest deal of 2024 was Oversea-Chinese Banking Corp. Ltd.'s (OCBC) voluntary general offer to acquire the remaining 11.56% stake in Great Eastern Holdings Ltd. that it did not already own. 

The offer, valued at $1.03b, closed in July, increasing OCBC’s stake in the Singapore-based insurer to 93.52%.  

Woori Financial Group Inc.’s planned acquisition of a 75.34% stake in South Korea-based Tong Yang Life Insurance Co. Ltd. ranked third, with a transaction value of $965.2m.

The deal, announced in August, is under regulatory scrutiny after an inspection at Woori Bank uncovered 233.4b won in suspicious loans. If regulators lower Woori Financial’s management assessment rating, the acquisition could face delays or become unfeasible.  

The fourth-largest transaction was Insurance Australia Group Ltd.’s (IAG) agreement in November to acquire a 90% stake in RACQ Insurance Ltd. from The Royal Automobile Club of Queensland Ltd. for $554.8m. 

IAG has an option to purchase the remaining 10% in two years, and the deal is expected to close in the third quarter of 2025.  

Malaysia-based Public Bank Bhd.’s agreement in October to acquire a 44.15% stake in LPI Capital Bhd. for  $402.5m (MYR1.72b) was the fifth-largest deal of the year.  

A significant pending transaction is Assicurazioni Generali SpA’s planned acquisition of a 51% stake in Generali China Insurance Co. Ltd. from CNPC Capital. 

Announced in early 2024, the deal was the largest of the first quarter and will make Generali the first foreign firm to obtain a controlling stake in a Chinese property and casualty insurer through a mandatory public auction.  

On a per market basis, Australia and New Zealand recorded the highest deal volume, with 24 transactions, followed by Southeast Asia (14 deals) and Japan (13 deals).