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Impact of Mergers and Acquisitions on European Insurers: Evidence from Equity Markets

Author

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  • Petr Jakubik

    (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic
    European Insurance and Occupational Pensions Authority)

  • Dimitrios Zafeiris

    (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic
    European Insurance and Occupational Pensions Authority)

Abstract

The current macro-economic and financial conditions remain extremely challenging for the European insurance sector. Under the ongoing low yield environment insurers are changing their business models and looking for new investment and business opportunities to improve their profitability and the overall solvency positions. This is also reflected in an increasing interest in mergers and acquisitions to achieve sufficient returns. However, there is no clear answer in the literature whether this strategy brings the expected positive results. This study empirically tests the effects of mergers and acquisitions (M&A) on share prices of European insurers via an event study. Our results do not confirm the positive impact of such strategies on acquirers’ share prices delivering abnormal returns for shareholders.

Suggested Citation

  • Petr Jakubik & Dimitrios Zafeiris, 2016. "Impact of Mergers and Acquisitions on European Insurers: Evidence from Equity Markets," Working Papers IES 2016/12, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Jul 2016.
    • Handle: RePEc:fau:wpaper:wp2016_12
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    File URL: http://ies.fsv.cuni.cz/sci/publication/show/id/5489/lang/cs
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    Cited by:

    1. Janowicz Magdalena & Luty Piotr, 2019. "Is the Goodwill Recognised in a Business Combination an Indicator of the Future Profitability of the Combined Company?," Financial Sciences. Nauki o Finansach, Sciendo, vol. 24(4), pages 45-54, December.
    2. Janowicz Magdalena, 2023. "The Profitability of Legal Mergers in Times of Economic Crisis – A Polish Example," Folia Oeconomica Stetinensia, Sciendo, vol. 23(2), pages 169-182, December.

    More about this item

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications

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