Issues in Insurance Company Mergers & Acquisitions

The completion of a successful merger or acquisition involving insurance companies requires careful planning and specialised skill sets to deal with the many important ways insurance companies differ from other entities. Insurance companies face a unique set of regulations, have special accounting rules, maintain liabilities that may be difficult to value. These challenges require in-depth knowledge of the business of insurance prior to attempting any acquisition. This article summarises the primary concerns that may arise in connection with the acquisition of an insurance company or lines of insurance business.