Activity will be come from smaller players
M&A will continue into the near future, but what it looks like will change, according to a panel of chief financial officers at this year’s PwC and S&P Global Bermuda Reinsurance Conference.
According to ParnterRe executive vice president and cheif financial officer Mario Bonaccorso: “The nature of the market has changed; a long term investors will benefit but short term shareholders will struggle. That’s why M&A is shifting to local buying.”
The CFO panel discussed the market pressures that stand to shape the reinsurance industry and offered their perspectives on how they are adapting their strategies to accommodate them.
Speaking on the panel alongside Bonaccorso were Argo chief financial officer Jay Bullock and Validus chief financial officer Jeffrey Sangster.
There were several comments made with regard to objectives when it comes to M&A and the were a general feeling that in many cases diversification was occurring for diversification sake.
All concurred that motives needed to be explored when it came to diversification and M&A.
With big Japanese markets diversifying and turning its sites to Bermuda with several major purchases there was interest form the floor on how this would impact the Bermuda market, but this was dispelled by Bonaccorso: ”There was a lot of capital i Bermuda, but it was European capital. Our industry is global by nature, and this will not change. I come from Exor and I don’t see PartnerRe changing because of Exor.”