By Hans Swolin ,
Co-Head Transactional Risk Europe, Middle East & Africa | Head of Nordics, Private Equity and M&A
The first half of the year was characterized by very competitive, seller-driven auction processes, often for transactions of larger sizes. The heightened demand for transactional risk insurance solutions during this period led insurers to be more selective on the transactions they wished to compete for and the terms on which they would engage with prospective insureds.
There was a significant shift in activity in the second half of 2022, driven by the numerous geopolitical and macroeconomic events taking place in Europe and globally. In certain countries and regions across EMEA, including in particular in the UK, Italy, and Central and Eastern Europe, the overall transaction volumes seen by Marsh remained broadly consistent in 2022, compared to the previous year. In many other parts of EMEA — including the Nordic countries, Benelux region, and Germany — there was a material reduction in transaction volumes when compared to 2020 and 2021. Across all EMEA, transaction timetables were significantly extended in the second half of 2022 and, generally, there was a shift in bargaining power from the sell-side to the buy-side. This was most markedly observed in lower valuations and a decreased intensity in deal tempo and timelines. This slowdown of deal timetables led to a smaller pool of placements proceeding to a formal underwriting process, although, as a result of the busier first half of the year, the total number of policies placed in EMEA was flat compared to 2021.