10 Questions to Ask Before an Insurance M&A

Marra, John; Heywood, Philip; Rohas, Megan
September 2011
Risk Management (00355593);Sep2011, Vol. 58 Issue 7, p14
Trade Publication
The article presents 10 questions that insurance executives should ask before an insurance merger and acquisition (M&A). It advises executives to determine whether there are alternatives to M&A that could provide greater returns, whether the partner is a good fit, and how industry trends could affect the viability of the deal. The importance of proper valuation is emphasized.


Related Articles

  • Is Working In A Bank-Owned Agency On Your Sales Horizon? Busher, Carroll // National Underwriter / Life & Health Financial Services;9/10/2001, Vol. 105 Issue 37, p25 

    Offers advice on how insurance producers can succeed from the the merging of banks and insurance companies. Risks and benefits of the merger agreement to insurance producers; Inclusion of insurance producers in an extensive vertical management structure; Opportunities offered by banks to...

  • Agency Acquisition Market May Be Down, But Not Out. CAMPBELL, JIM // National Underwriter / P&C;6/22/2009, Vol. 113 Issue 24, p26 

    The article reports that mergers and acquisitions market for insurance agencies and brokerages is down, but the hope is still there. Despite the doubt in the market and the declines in buyer demand, deals are still getting done. Approximately 45 deals were announced during the first quarter of...

  • Internal Perpetuation Suffers In Today's M&A-Hungry World. Doran, Tom // National Underwriter / P&C;7/16/2007, Vol. 111 Issue 27, p34 

    The article discusses the increasing competition in the insurance agency acquisition in which the external buyers have dominated the market compared to the internally perpetuated buyer. The external buyers have competed directly for the acquirement opportunities of the high quality agencies...

  • Mergers & Acquisitions, Diversification and Performance in the U.S. Property-Liability Insurance Industry. Shim, Jeungbo // Journal of Financial Services Research;Apr2011, Vol. 39 Issue 3, p119 

    This paper examines the relationship between mergers & acquisitions (M & As), diversification and financial performance in the U.S. property-liability insurance industry over the period 1989-2004. The risk-adjusted return on assets (ROA), return on equity (ROE), Z-score and total risk measured...

  • VALUATION ESSENTIALS FOR CFOs. Evans, Frank C. // Financial Executive;Mar/Apr2002, Vol. 18 Issue 2, p63 

    The article presents advice to chief financial officers (CFOs) on how to determine an acquisition target's proper valuation. CFOs need to be able to distinguish between a firm's standalone value and its value to the acquirer. When the latter exceeds the former, synergies exist and the CFO has to...

  • Finding Easy Money On the Target's Shop Floor. Robinson, Wayne // Mergers & Acquisitions: The Dealermaker's Journal;Nov/Dec98, Vol. 33 Issue 3, p35 

    Suggests evaluating a company's value-generating potential in order to assure a quick return on investment following an acquisition transaction. Questions to ask the seller before an acquisition transaction; Importance of determining whether assembly operations are labor-paced or machine- or...

  • Accounting Rates of Return as Measures of Post-Merger Performance. Stanton, Patricia // Australian Journal of Management (University of New South Wales);Dec87, Vol. 12 Issue 2, p293 

    Abstract: Accounting rates of return are used widely in empirical studies to assess postmerger performance and to compare this performance with that of non-merged firms. This paper suggests that there are many problems involved. In particular, accounting rates of return are unreliable measures...

  • Greater Diligence in M&A Process Rewards Both Buyers and Sellers. Jazwinski, John // Metal Center News;Apr2014, Vol. 54 Issue 4, p2 

    The article discusses the decline in merger and acquisition transaction in 2013. The topics discussed include diligence exercised by firms before going for merger, potential seller's emphasis on creation of share holder's value, evaluation of the firms based on their return on invested capital....

  • Chapter 8: Valuation and pricing tips. Smith, Ian // Essential Guide to Buying & Selling Unquoted Businesses;1/1/1998, p72 

    Chapter 8 of the book "The Essential Guide to Buying and Selling Unquoted Businesses" is presented. The four main techniques worth noting in valuation and pricing include price earnings ratios and return on investment. A formula to calculate a Discount Factor is revealed. It mentions the...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics