Research company releases info for insurers
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Life
insurance companies represent a major sector of the insurance
industry in general.
Today, a major research company released some information regarding
what life and health
insurers should do to increase their markets.
“S&P Equity Research Sees M&A and Globalization as
Growth Drivers for Life and Health Insurers,” from PR News
Wire Service on July 25, 2006 looks at the findings of the research
company.
The research company suggests that insurance companies should look
to global expansion and consolidation as keys to their success.
“Standard & Poor's Equity Research Services sees a combination
of consolidation and global expansion as the primary driver for
long-term growth among life and health insurance companies.”
The
insurance industry has been thriving quite well as of lately,
but the research findings from S&P look to the future in terms
of growth opportunities for companies.
“Following a record year for mergers and acquisitions in 2005
where 28 deals valued at $21.8 billion were announced, Standard
& Poor's Equity Research expects the current transaction pace
to continue during the second half of 2006 and into 2007, as larger
firms reassess their business mix. These companies may look to add
complementary product lines via acquisitions of smaller insurers
or, conversely, spin-off or sell underperforming assets in an effort
to improve profits and focus on core competencies.”
The insurance industry is indeed doing quite well, but they could
face some problems in the future, such as slowing economy, that
could affect how they are doing right now.
Researchers also warn about increased competition that could affect
insurance companies in a negative way. There suggestions for globalization
and consolidation could help businesses stay afloat if times get
tough.
“Standard & Poor's Equity Research sees international
expansion benefiting MetLife (MET: $52, 5-STARS out of 5) and Prudential
(PRU: $78, 4-STARS). Both companies, in our opinion, also remain
focused on enhancing distribution, controlling costs and offering
new products that address consumer needs.”
Insurance professionals can purchase all of the findings from S&P’s
survey online or by telephone.
