Niche value, captive market are among key factors


Ernst & Young Malaysia Insurance Leader Brandon Bruce

The lofty valuations for the mergers and acquisitions (M&As) in the insurance sector, as seen in some of the recent cases, will be much dictated by the niche and value an insurer has to offer.

There are some key factors that will influence the price which the acquirer is willing to pay for the insurance assets. Some of these include the existence of a captive market, bancassurance, economies of scale and whether it fits strategically in the acquirers future plans in a particular market.

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