Merger Results Surprise Deal-Makers
Monday, May 1st, 2000 Risk Management"Mergers and acquisitions in the insurance industry just don’t work. Can you name one that’s been successful?" Actuaries responding to that statement and a follow-up question posed by a fellow member of the Casualty Actuarial Society between sessions of the CAS Valuation Seminar here were hard-pressed to identify a clear-cut winner in the marathon property-casualty insurance deals over the past few years. In fact, if you define success as meeting expectations initially set out when a deal's terms are negotiated, you’re never going to find one, according to two veteran deal-makers who spoke at one of the sessions. "You can always count on the fact that actual results are going to be different than expected," said Paul Brehm, vice president and chief corporate actuary for The St. Paul Companies.
