Having all but evaporated in the past 18 months , mergers and acquisitions could make a comeback within the reinsurance space during 2018 , according to Clyde & Co. After record catastrophe losses in 2017 , several company balance sheets could be under pressure , potentially opening the market to more M&A. Equally , Clyde & Co argues pricing pressure could decrease due to rate hikes in loss - impacted lines of business . This could pick up revenue to focus on M&A. The rise of insurtech also may threaten buying opportunities for incumbent reinsurers , the company said .
Having all but evaporated in the past 18 months, mergers and acquisitions could make a comeback within the reinsurance space during 2018, according to Clyde & Co. After record catastrophe losses in 2017, several company balance sheets could be under pressure, potentially opening the door to more M&A. Equally, Clyde & Co argues pricing pressure could decrease due to rate hikes in loss-impacted lines of business. This could free up firms to focus on M&A. The rise of insurtech also may create buying opportunities for incumbent reinsurers, the company said.