Cykl koniunkturalny a dynamika fuzji i przejęć na rynku ubezpieczeniowym – analiza teoretyczna
Business cycle and the activity level of mergers and acquisitions on the insurance market: theoretical analysis

Summary/Abstract: There are two sources of appearance of a business cycle in insurance: (i) loss ratio high- er than expected (Katrina hurricane in 2005 e.g.), or (ii) economic downturn (2008). Successive phases of the cycle affect the assets and liabilities subsequently: advantageous- ly, and then disadvantageously. In the consequence, this determines the proneness of con- solidations. Insurers' awareness of appearance of the periods of a recession on the market causes that some insurers take actions aimed at reducing a negative influence of the cycle on their standing. The catalogue of ex ante actions covers also mergers and acquisitions. However, significant number of transactions can be regarded as a response to the market environment, being effect of the subsequent phases of the cycle. There are two groups of these transactions: (i) determined by external factors (like economic necessity), and (ii) bas- ing on voluntary, internal decision, being a strategic or incidental response of the insurer to the particular conditions.

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