Solvency II will spur a wave of merger and acquisition (M&A) activity among insurers, PricewaterhouseCoopers (PwC) predicts.
While M&A in the insurance industry has been relatively restrained in the wake of the financial crisis, the accountancy firm believes a strategy re-think stemming from Solvency II will lead to more restructuring this year. Central to the EU Directive, due to come into force in 2012, is an increase in capital requirements for insurers. Partner at PwC Achim Bauer says: "The move to Solvency II will force many insurers to re-assess capital efficiency, risk diversification and organisational structures, the results of which will provide a powerful spur for both divestment and consolidatio...
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