There is a particular trend noticed by Jared Seyl: Farmers Insurance clients seem to be turning more towards mergers and acquisitions. However, some deals and candidates in the M&A field don’t seem to be able to meet that demand. It appears that the recent trend is that sellers expect more high deal values for M&As.
What The Experts Say
According to Moody’s Investor’s Service, acquirers of M&A, particularly within the field of specialty insurance, have been “large and well-diversified firms.” They also feel strongly about diversifying operations. It’s for this reason that they seek out smaller agencies that have specialized portfolios that could boost their own.
Diversity and Growth
Part of the reason that M&As happen is to diversify and maintain market relevance. The variety of products to address customer needs is something that resounds with Jared Seyl, as Farmers Insurance is well known for its myriad of products. The teams in Farmers Insurance, one of the nation’s biggest providers of insurance, always make sure to remind customers that they provide a very diverse lineup of products. From commercial to financial, business, and personal products, the company aims to be able to provide whatever the customer may need. That is what the buyers of mergers are also trying to achieve.
High Profile Deals
The experts feel as though the past year will get remembered for its challenging times for dealmakers. Since there aren’t as many high valuation deals to be had, it was more difficult to close deals. It carried on up to 2019’s first half.
However, the problematic market has started to show signs of letting up. Even though small to midsized reinsurers may still feel some of the struggles, prompting them to go on and merge with more substantial companies, 2019 is seeing an uptick. This economic downturn may prompt along with a better value. Dealmakers might be able to do better with declines.
