Number of M&A deals announced in the financial services industry in Q4 2017 increased by 9.7%. In terms of deal value, the industry registered 257% quarter-on-quarter growth to reach $116bn - the highest value among any of the quarters in 2017. The strong growth in deal value was supported by a large number of high-value deals, as 15 deals were worth over $1bn. 

Key Takeaways

Insurance sector recorded the highest number of M&A deals, accounting for 42% of all M&A deals in Q4 2017. While consolidation was seen at a broader company level, a considerable number of investments were also registered among distribution channels, with insurance agencies and brokerages collectively accounting for two fifths of total deals in Q4 2017.

Wealth management was the fastest-growing segment for venture finance deals in Q4 2017. The segment grew by a staggering 233% in Q4 2017 to account for 18% of overall venture finance deals.

North America registered a significant rise of 263% in M&A deals in the payment segment in Q4 2017. A rise in investments could be seen in areas such as cryptocurrencies, payment acquiring and processing, and payment cards. Europe emerged as the favored location for private equity investments, accounting for 47% of total deal count after growing by a staggering 133% in Q4 2017.-