Top 5 things to watch in the MandA market in 2021

By Andy Brett
04 February 2021

What do our professional, executive and financial risks team consider as the top 5 things to watch in the M&A market?

Lots of deals
H2 2020 was the highest second half for global M&A since H2 2015 with $2.23tn of deals announced so far. Q3 and Q4 2020 saw record levels of Reps and Warranties Insurance (RWI) being placed across the market and we expect strong deal flow to continue in 2021 which is backed up by insights from leading investment banks.
Watch-out for healthcare and tech deals
Unsurprisingly the healthcare and tech sectors are booming right now. The pandemic has drawn into focus our reliance on both sectors and we expect these to be areas for growth next year.
Increase in cross-border M&A
We are seeing an increase in cross border activity with many US clients looking at value for money assets in both UK and Europe. Clients are also becoming accustomed to virtual due diligence and are therefore getting back on track with cross border deals.
Increased premiums
As claims are filtering through market leaders, they have increased rates by 20%. We expect this to filter through the wider market as many underwriters renew capacity in 2021.
Lingering effects of COVID
Whilst we may be turning a corner in 2021, we still expect to see an increase in claims off the back of companies that are in trouble and also an increase in distressed deals as the effect of the pandemic is still worked through.

Miller is a leading broker of professional, executive and financial risks in the London market, specialising in all forms of cover across all types of financial and commercial business. Our North American Wholesale teams are here to help clients meet some of the key challenges facing business today.

Utilising our long-standing relationships and access to the Lloyd's market, we efficiently transfer risk, even for the most complex of challenges faced by professionals in North America. Our team of specialists engineer bespoke solutions by partnering with retail & wholesale insurance brokers, coverholders and MGAs.