Value Creation by M&A in the European Insurance Industry – an Empirical Investigation
M&A activity in the European insurance sector increased sharply in the early 1990s. After reaching its peak in 1999, several years of depression followed. However, in 2005, momentum built up again. Analyses in chapter 2 provide evidence that this pickup in M&A activity should not only be considered a blip, but that it marks the entry into the next cycle of transactions in the sector. Besides upcoming reformation of legal, accounting and supervisory regimes, investors’ pressure on management to create value is identified as major motive for further consolidation of the European insurance industry. This finding confronts with a paradox: Empirical studies of M&A in the financial services industry frequently doubt value creation, in particular in the banking industry.154
KeywordsAbnormal Return Event Window Cumulative Abnormal Return Cross Border Transaction Combine Entity
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