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M&A due diligence and actuarial valuation

We provide assistance to both buyers and sellers in support of the M&A process.

We have developed appraisals of companies to be offered for sale and advised the seller on company value and potential selling price. We have assisted numerous buyers in evaluating target company values and future capital requirements, and in reviewing the products, reserves, assets liability position, reinsurance programs, etc of the target companies.

With a few exceptions Asian markets are very fragmented and most are highly competitive. In recent years there has also been a trend towards increasing additional capital requirements from regulatory and accounting reforms particularly in relation to the introduction of risk based capital in many countries. These pressures have added further impetus towards more consolidation.

Up to now new entrants have generally preferred to enter markets by acquisition as the uncertainties of green fields and in particular building distribution networks have been considered too high by many.

Based on the above factors, we expect to see strong merger and acquisition activity for the foreseeable future. Asian markets are currently unsustainably competitive – often the result of too many players in the marketplace. The natural result is a drive to consolidation.

We can work for the buyer or the seller in such cases. Deloitte Actuarial & Insurance Solutions can help to identify potential buyers or target companies for our clients.

We carry out due diligence reviews of target companies’ liabilities in such circumstances. We are also experts in actuarially valuing insurance entities – an exercise known as appraisal valuation.

We have regularly undertaken appraisal values and provided strategic advice on numerous high-profile merger and acquisition deals throughout Asia. The independence of our advice is greatly valued in these transactions as is our familiarity with the merger and acquisition process.

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