FINANCIAL SERVICES INDUSTRY

NUMBER AND VALUE OF ANNOUNCED MERGERS AND AQUISITIONS BY SECTOR, 1999-2003

($ billions)


 

1999

2000

2001

2002

2003


Deals


Deals







Value
Securities (1)165$12.9201$67.8224$14.5170$8.1129$12.3
Specialty finance (2)21520.716337.610124.110723.68420.1
Banks28368.921390.220632.11798.619363.7
Thrifts747.5674.4558.5529.0498.7
Insurance44138.534423.632765.33129.731058.5
     Life/health5516.45813.34458.6293.03314.5
     Property/casualty7320.2659.5652.4580.57022.4
     Brokers and agents2740.41960.51991.22041.21921.1
     Managed care391.5250.3193.2215.01520.5
Total1,178148.5988223.6913144.582059.0765163.3

(1) Includes securities and investment companies, broker/dealers, and asset managers.
(2) Specialty finance firms range from small finance companies to major credit card operations.  

Source: SNL Financial LC.

NUMBER OF ANNOUNCED FINANCIAL SERVICES
MERGERS AND ACQUISITIONS BY SECTOR, 2000-2003




Source: SNL Financial LC.



  • In 2003, the number of financial services deals fell to 765 from 820 in 2002. However, deal value rose 177 percent from 2002 to 2003.

  • The number of deals increased in only one sector, banks/thrifts.

VALUE OF ANNOUNCED FINANCIAL SERVICES
MERGERS AND ACQUISITIONS BY SECTOR, 2000-2003


($ billions)



Source: SNL Financial LC.



  • The value of insurance sector mergers and acquisitions in 2003 reached $58.5 billion, up $48.8 billion from $9.7 billion in 2002. The rise was due to a $21.9 billion increase in property/casualty deals, along with a $15.5 billion rise in managed care deals. Bank and thrift deal value rose $54.8 billion, due exclusively to a $55.1 billion increase in bank deal value.

TOP TEN CROSS-INDUSTRY ACQUISITIONS ANNOUNCED IN 2003, UNITED STATES (1)







Industry

Country

Deal value (2)
($ millions)
1Bank of America Corp.BankU.S.FleetBoston Financial Corp.BankU.S.$49,328.7
2Anthem Inc.InsuranceU.S.WellPoint Health Networks Inc.InsuranceU.S.16,247.1
3St. Paul Cos.InsuranceU.S.Travelers Property Casualty Corp.InsuranceU.S.16,138.5
4Manulife Financial Corp.InsuranceCanadaJohn Hancock Financial Services Inc.InsuranceU.S.10,423.0
5Citigroup Inc.BankU.S.Sears Roebuck & Co.'s credit and financial businessSpecialty lenderU.S.6,000.0
6General Electric Co.DiversifiedU.S.Transamerica Finance's commercial lending businessSpecialty lenderU.S.5,400.0
7BB&T Corp.BankU.S.First Virginia Banks Inc.BankU.S.3,375.5
8UnitedHealth Group Inc.InsuranceU.S.Mid Atlantic Medical ServicesInsuranceU.S.3,301.1
9Lehman Brothers Holdings Inc.Broker/dealerU.S.Neuberger Berman Inc.Asset managerU.S.2,947.1
10American International GroupInsuranceU.S.GE Edison Life /GE's US auto and home businessInsuranceU.S.2,150.0
(1) At least one of the companies involved is a U.S.-domiciled company. List does not include terminated deals.
(2) At announcement.

Source:  SNL Financial LC.