Solvency II: A Driver for Mergers and Acquisitions&quest

Rayna Stoyanova and Helmut Gründl
Additional contact information
Rayna Stoyanova: International Center for Insurance Regulation, Johann Wolfgang Goethe-University Frankfurt am Main, Grüneburgplatz 1, Frankfurt 60320, Germany

The Geneva Papers on Risk and Insurance - Issues and Practice, 2014, vol. 39, issue 3, 417-439

Abstract: The European insurance industry is awaiting the new EU-wide harmonised Solvency II framework. Before its introduction, it is important to find out which incentive effects can arise from it. Practitioners predict a trend towards consolidation in the insurance sector due to recognition of geographic diversification effects in Solvency II’s standard formula. This paper studies whether the new European regulation standards will constitute a driver for mergers and acquisitions in the non-life insurance sector. We identify situations in which consolidation becomes profitable. Our results indicate that the Solvency II framework may lead to an enhanced geographic restructuring wave. However, the profitability of this restructuring depends strongly on the correct estimation of costs and the characteristics of the consolidation partner chosen.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.palgrave-journals.com/gpp/journal/v39/n3/pdf/gpp201332a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/gpp/journal/v39/n3/full/gpp201332a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:gpprii:v:39:y:2014:i:3:p:417-439

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/41288/PS2

Access Statistics for this article

The Geneva Papers on Risk and Insurance - Issues and Practice is currently edited by Christophe Courbage

More articles in The Geneva Papers on Risk and Insurance - Issues and Practice from Palgrave Macmillan, The Geneva Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().