In this article we consider how the current challenging environment is impacting M&A in the insurance sector

We are living in volatile times. As a consequence of the COVID-19 virus, our equity and high-yield markets have witnessed large swings, making it difficult to value assets. Uncertainty over the timing and extent of the recovery has also made it difficult to value income streams. Moreover, debt financing has become more challenging. All of these factors are contributing to a challenging environment for M&A.

Government interventions into economies as a result of the COVID-19 pandemic are now globally widespread. To date, in the UK, this has predominantly been focussed on relief measures targeted at financial support, including the creation of government backed loan schemes and the furlough scheme.

Overview of mergers and acquisitions (M&A) market in Singapore

Singapore was one of the first countries outside of China to encounter the virus. Whilst deal activity was down on the prior year, M&A transactions were still happening with sectors such as e-commerce and renewable energy appearing attractive. The impact on M&A activity for the second quarter of 2020 isn't clear at present but restricted mobility will certainly impact transactions, with site visits being all but impossible.

COVID-19 (Temporary Measures) Bill to offer respite for businesses and individuals struggling to fulfil contractual obligations or facing bankruptcy/insolvency as a result of the COVID-19 outbreak.