M&A Quarterly News In The Financial Services Industry Sector

M&A Quarterly News In The Financial Services Industry Sector

By David Sinyard

March 19, 2018

The report below presents you with a good overview of the first quarter M&A activity in the Financial Services Industry Sector. M&A activity for North American based target companies in the Financial Services sector for Q4 2017 included 134 closed deals, according to data published by industry data tracker FactSet.

One of the largest transactions of the quarter closed in November when Hartford Life & Accident Insurance Co, a subsidiary of Hartford Life Inc, ultimately owned by The Hartford Financial Services Group Inc, acquired the business and assets of the group life and disability operations of Aetna Inc for US$1.5 billion in cash. Funding for the deal came from existing capital resources. The acquisition accelerates Hartford Life & Accident Insurance Co’s strategies for distribution, digital capabilities and claim outcomes, and enhances its distribution footprint. The transaction is expected to be accretive to The Hartford Financial Services Group Inc’s earnings in 2018.

Industry Indicators

  • The bank prime loan rate, an indicator of financial institutions’ revenue from services, was 4.25% as of the week ending December 12, 2017, up from a rate of 3.5% the same week in 2016.
  • Total US revenue for the finance and insurance sector rose 6.1% in the third quarter of 2017 compared to the previous year.

Posted by David Sinyard.

Read the Entire Financial Services 1st Quarter Newsletter Here