Insurtech: on the road to further consolidations. Part 2.

With regards to mergers and acquisitions during current year we observed mixed trends in the Insurtech market. Below we will focus on major tendencies, while next articles of this series will be devoted to the global forecast and certain deals.
As of June 2019, notwithstanding rising cumulative investment expenditures, overall number of transactions decreased by 30% year on year, primarily to dilution of the above-mentioned indicator in the United States. Total amount of transactions spilled to 20 in June, compared to 28 a year earlier on the similar date, (predominantly this was caused by decline in early-stage funding, including angel and seed-rounds investments). Despite this decrease of the total volume, the notional amount of the capital raised composed 325 million USD in June 2019, in comparison with 216 million USD in May 2019 and 109 million USD in June 2018.
By the end of the first half of the current year the overall number of M&A transactions within the Insurance industry field rose up to 222 worldwide. In total this is up from 196 six month earlier, tracing 13% rise — the highest level of acceleration since the first half of 2015, with the fixing fourth consecutive six-month term of acceleration (in comparison there were approximately 85 Insurtech transactions, valuing of approximately 1.42 bln USD by the end of 1Q 2019). In notional value 2Q 2019 amounted for approximately 2.10 bln USD.
With the highest level of M&A activity in the Americas region, (the USA market on its own enumerated for 93 recorded transactions). Meanwhile the European market demonstrated the highest increase in transaction activity — approximately 40% rise in mergers with 88 completed transactions for the first half of the consecutive year compared to 64 in the second half of the 2018 (France, UK and Spain lead the list for the European market). The ASEAN market demonstrated high level of acceleration, with 38 Insurtech transactions for the first half of the consecutive year (with the highest volume of deals in Japan).
Major tendencies within the global M&A market for Insurtech’s could be enumerated in next way:
· Despite Brexit uncertainty, we expect deals activity in Europe remain stable in the mid-term, as the global liquidity channel increased substantially;
· Nevertheless, Americas will remain key region for the Insurtech mergers, as the market still highly segmented;
· Asia will be growing faster than other regions, due to relatively low level of Insurtech penetration and vast investment opportunities.
