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David Jasmund

E: djasmund@pcecompanies.com

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Industry Trends

Cautious Fed Holds Rates Steady

On June 12, 2024, the Federal Reserve maintained its benchmark interest rate unchanged in the 5.25%-5.50% range, projecting just one rate cut by year-end. Despite inflation reduction and strong labor market performance, the Fed remains cautious, indicating that policy easing will depend on further economic data, and reiterating the Fed's goal of gradual inflation decline without disrupting economic stability.1

Private Equity Transactions Return in Q2 2024

Global private equity and venture capital deals surged by 65% year-over-year in April 2024, reaching $65.1 billion, driven by robust activity in the technology and healthcare sectors. A slew of mega transactions, such as Silver Lake's $21.1 billion acquisition of Endeavor Group Holdings, which was the largest take private deal in April, offset the slightly lower number of transactions compared to the same time last year.2

Potential Revival of the M&A Insurance Market

Insurance M&A activity was sluggish in 2023, however, 2024 seems poised for increased deal activity. While high interest rates keep life and annuity carriers attractive, property and casualty insurers face ongoing challenges from trends like social inflation and climate-related risks. As a result, insurers are turning towards M&A to strengthen their balance sheets, expand their product offerings, and boost their geographic reach.3

Banking Bonanza: Major Deals Shake Up U.S. Financial Landscape

Increased U.S. regulatory liquidity requirements continue to force small and midsized banks to merge to meet federal regulations. At the same time, mega deals have returned forefront with the announcement of SouthState Corp.'s $2.0 billion acquisition of Independent Bank Group. The banking merger marks the largest U.S. bank M&A deal since early 2023 and underscores a trend towards consolidation, with YTD 2024 transaction value surpassing the total transaction value in 2023.4

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • NFP Corp.
  • Aon plc
  • $12,697.00
  • Truist Insurance Holdings, LLC
  • Clayton, Dubilier & Rice, LLC; Stone Point Capital LLC; Mubadala Investment Company PJSC
  • $12,600.00
  • American National Group Inc.
  • Freestone Re Ltd.; Brookfield Reinsurance Ltd.; North End Re (Cayman) SPC; Bam Re Holdings Ltd.; Bam Re Partners Trust
  • $3,502.00
  • Lakeland Bancorp, Inc.
  • Provident Financial Services, Inc.
  • $1,249.00
  • Accredited America Insurance Holding Corporation
  • Onex Corporation
  • $465.00
  • American National Bankshares Inc.
  • Atlantic Union Bankshares Corporation
  • $444.00
  • Summit Financial Group, Inc.
  • Burke & Herbert Financial Services Corp.
  • $367.00
  • Electric Insurance Company
  • RiverStone International Holdings Inc.
  • $333.00
  • Fisher Brown Bottrell Insurance, Inc.
  • Marsh & McLennan Agency LLC
  • $320.00
  • CapStar Financial Holdings, Inc.
  • Old National Bancorp
  • $319.00

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • CPH & Associates Insurance Agency, Inc.
  • DOXA Insurance Holdings LLC
  • n/a
  • ClearPath Financial Insurance LLC
  • Fortis Capital Advisors, LLC
  • n/a
  • The International Hole In One Association
  • DOXA Insurance Holdings LLC
  • n/a
  • Renters Legal Liability LLC
  • DOXA Insurance Holdings LLC
  • n/a

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • Lone Star State Bancshares, Inc.
  • Prosperity Bancshares, Inc.
  • $226.37
  • Vericity, Inc.
  • iA American Holdings Inc.
  • $170.02
  • RMIC Companies, Inc.
  • Arch U.S. MI Holdings Inc.
  • $140.00
  • Community West Bancshares
  • Community West Bancshares
  • $99.38
  • Wayne Savings Bancshares, Inc.
  • Main Street Financial Services Corp.
  • $66.95

 

Source S&P Capital IQ as of 7/9/2024 and PCE Proprietary Data

PCE Transactions

Contacts

David Jasmund

Orlando Office

407-621-2111 |

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Michael Poole

Orlando Office

407-621-2111 |

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Kyle Wishing

Atlanta Office

404-994-4186 |

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Data Assumptions

This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.

Glossary

EBIT - Earnings Before Interest and Taxes
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

  1. 1. Schneider, H., Saphir, A. "Fed leaves rates unchanged, sees only one 2024 cut despite inflation progress." Reuters, June 12, 2024.
  2. 2. Vidal, K., Sabater, A. “Private Equity Deal Value Jumps 65% YoY in April.” S&P Global Market Intelligence. May 9, 2024.
  3. 3. Smith, P. “P&C Report 2024 Q2 Outlook.” Burns & Wilcox. April 17, 2024.
  4. 4. Villaluz, G., Gull, Z. “Bank M&A Deal Tracker: $2 Billion-Dollar Deals Announced in 3 Weeks.” S&P Global Market Intelligence. May 22, 2024.

 

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