PE and insurance are on pace for a big year, as HGGC’s acquisition of Pearl Holding Group this week marked the 86th deal of 2014 (and the 87th is covered below). Taking a look at the space in the PitchBook Platform, last year’s 103 insurance deals marked a high point in the past decade—a figure well within reach at the current pace.
Click to explore the data on the PitchBook Platform
European activity, at 27 insurance deals, is already the most the region has seen in years. The U.K. has accounted for more than half of that total. Another unmistakable trend is the increasing amount of add-ons, which make up more than 62% of year’s completed deals so far (compared to 53% in 2013 and 46% in 2012). That may come as little surprise, as integrating policyholders into a larger company complements to PE’s growing trend of consolidation. Insurance add-ons are also a quick way of beefing up AUM, while some speculate that insurance's currently reliable returns may also increase in future as demographics age and interest rates climb.
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