The past decade has seen global M&A deals come and go in the international arena. The COVID-19 pandemic, however, created mixed investor sentiment due to the uncertainties that came with it, but also a shift in focus to Asia, which became the hotbed for M&A interest. In 2022, Asia not only saw the highest percentage increase year-on-year in deals, but it was also the only region that did not experience a dip in the second half, something the other markets experienced.
It remains to be seen what the rest of 2023 and 2024 will bring in terms of deal-making. But the sentiment for Asia seems promising, especially with the opening of China’s borders post-pandemic, which will bolster confidence further in the region.
The two most powerful 2023 M&A drivers are inflation and interest rates, according to professional services company Deloitte. However, whilst global inflation seems to have peaked and core inflation eased somewhat, according to the IMF, inflation remains above central banks’ targets in several countries. It forecasts global economic growth at around 3% over the medium term. What is noteworthy is that emerging and developing Asia is expected to grow strongly at 5.3% this year.
Whether it be a strategy for market domination, product diversification, competitive war, building scale, sustaining growth, or enhancing a company’s presence in an attractive market, embarking on an M&A requires commitment, clear objectives, and sturdy leadership. Not to mention the buy-in from both internal and external stakeholders, where at times, the pushback from the potentially acquired target can create a long offensive and defensive tug of war.
The Insurance M&A Asia Conference hosted by Asia Insurance Review aims to showcase Asia’s potential as an M&A hotbed, as well as the impact of inflation, interest rates, and macroeconomic growth on M&A activity in the region. With the theme “Developing a Blueprint for Asia as The Next Insurance M&A Hub”, the conference will look at M&A trends in the region and how the regulatory landscape can help promote Asia’s strength amidst economic and geopolitical challenges.
The general economists forecast that insurance M&As will start to recover by the end of 2023 or 2024.
Be at this conference to capitalize on the thriving opportunities, whether you are considering an M&A strategy, in the midst of one, or want to be prepared and be aware of what the future holds!