Creating Value in Insurance Mergers and Acquisitions by Andreas Schertzinger, Prof. Dr. Dirk Schiereck

By Andreas Schertzinger, Prof. Dr. Dirk Schiereck

The primary economics of the eu assurance and particularly the effect of the hot fiscal drawback at the monetary providers area tend to reason a wave of M&A transactions within the assurance region. An occasion research of the former M&A cycle within the ecu assurance exhibits that M&A transactions on typical in attaining momentary worth production. even if, there's a major dispersion between person transactions and, within the long-term, the typical M&A transaction destroys value.

Andreas Schertzinger identifies determinants of winning transactions, similar to transaction timing and diversifying transaction process, via a multivariate statistical research. case reports illustrate luck elements particularly on the topic of the behavior of transactions in higher element.

Show description

Read Online or Download Creating Value in Insurance Mergers and Acquisitions PDF

Best macroeconomics books

India: macroeconomics and political economy, 1964-1991

This quantity is an element of a learn venture initiated and financed by means of the realm financial institution entitled "Macroeconomic rules, main issue, and progress within the lengthy Run," which concerned stories of the macroeconomic histories of eighteen international locations as they tried to keep up fiscal balance within the face of overseas expense, rate of interest, and insist shocks or family crises within the sorts of funding books and similar budgetary difficulties.

Transitional Dynamics and Economic Growth in Developing Countries

4 stylised proof of combination financial progress are arrange at the beginning. the expansion technique is interpreted to symbolize transitional dynamics instead of balanced-growth equilibria. in contrast heritage, the elemental value of subsistence intake is comprehensively analysed. for that reason, the which means of the productive-consumption speculation for the intertemporal intake trade-off and the expansion procedure is investigated.

Global Cooperation Among G20 Countries: Responding to the Crisis and Restoring Growth

On the outbreak of the worldwide monetary hindrance, 2008, the G20 was once broadly said as supporting hinder a fair extra severe decline within the worldwide financial system. It helped to calm the panic in monetary markets and articulate a suite of attainable coverage thoughts to revive worldwide balance and development. even though, because the dual-track restoration set in, coverage recommendations for complex economies and EMEs diverged.

Additional info for Creating Value in Insurance Mergers and Acquisitions

Sample text

The combination of two correctly priced companies under CAPM still lie on the security market line, and thus do not increase value for shareholders compared to the standalone entities. , Copeland/Weston (1988, pp 193). , Jennings (1971, p. 131). 28 2 Overview of M&A in the European Insurance Industry Tax optimization Jensen and Ruback (1983, p. 24) define tax optimization as the increase in shareholder profit through a decrease of tax load or a more effective utilization of tax shields. Tax optimization is thus not necessarily value generating from a global perspective, since value is redistributed from tax authorities to transaction partners.

Settnik (2006, p. 125) notes that the disciplining hypothesis requires an information efficient capital market, where valuation of the target suffers from ineffectiveness of current management. Capital market access Sautter (1989, p. 137) argues that M&A may improve access to external capital markets due to cost degression of fixed fees for capital market transactions. g. 62 Co-insurance effect Seth (1994, p. 432) defines the co-insurance effect as an increased debt capacity of merged entities (or reduced probability of insolvency given same financing structure).

Data provided by European Commission on European Commission (2007a). European Commission (2007b, p. 7). European Commission (2007b, p. 39 and p. 45). European Commission (2004) notes that “average market share of the 5 largest institutions in EU15 countries comes close to 60% in both banking and insurance sectors”, raising concerns of the responsible competition authorities. , x Beitel (2002, p. 17) draws a distinction between economic and strategic motives for M&A, and subdivides economic motives further into value maximizing53 and non-value maximizing motives.

Download PDF sample

Rated 4.10 of 5 – based on 45 votes