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Finance and Credit
 

The influence of mergers and acquisitions on the Russian insurance market

Vol. 21, Iss. 30, AUGUST 2015

PDF  Article PDF Version

Received: 4 March 2015

Accepted: 17 March 2015

Available online: 30 August 2015

Subject Heading: Insurance

JEL Classification: 

Pages: 60-71

Tarasova Yu.A. Saint Petersburg School of Economics and Management, National Research University - Higher School of Economics, St. Petersburg, Russian Federation
yutarasova@hse.ru

Subject The article considers the degree of influence of investment transactions on the development of the Russian insurance market through the analysis of major indicators characterizing its activity.
     Objectives The objective of the study is to reveal factors related to M&A transactions and the activity of the Russian insurance market, and to analyze their impact on Russian large insurance companies.
     Methods As a rule, the information on mergers and acquisitions is confidential; therefore, I examined quantitative and qualitative data using a case analysis and ranking. I took the basic information for the study from websites of state agencies, interviews with managers of insurance companies operating on the Russian insurance market, and opinions of financial analysts presented in periodicals.
     Results
Special focus was on the analysis of the key financial figures presented by absolute and relative indices. I presented all indices in a tabular form. The study also presents comparative tables showing the impact of the transactions on certain economic indicators, and real and fictitious investment transactions.
     Conclusions and Relevance The study helps understand consolidation processes in the insurance market. Nowadays, investment deals are considered as a quick way to increase financial and competitive position of insurance companies. However, despite the positive impact on the activities of the Russian insurance market, such deals lead to consolidation and oligopolistic tendencies that reduce market competition.

Keywords: insurance companies, investment deals, insurer, refinancing, micro-insurance

References:

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