‘Expect To See M&A Activity Persist In Sector’
“As a leading domicile for [re]insurance, we expect to see M&A activity to persist in this sector,” Walkers’ Corporate team in Bermuda said.
Rachel Nightingale, a partner, and Marah Smith, a senior associate in Walkers’ Corporate team in Bermuda, said, “As a leading domicile for [re]insurance, we expect to see M&A activity to persist in this sector, particularly private equity investment in life and other insurance vehicles given the stabilization of interest rates across the US and Europe, decelerating inflation, resolution of several key national elections and the narrowing of valuation gaps, providing PE with more opportunity for successful exits.
“With the introduction of Bermuda’s corporate income tax regime, which aligns with the OECD’s Global Minimum Tax Rules [the "GloBE Rules"], with effect from fiscal years commencing 1 January 2025 and thereafter, we expect many [re]insurance entities to maintain principal places of business in Bermuda and we have seen increased M&A and transactional activity, with a number of global corporates redomiciling to Bermuda in order to take advantage of the benefits of being in a jurisdiction which does impose corporate income tax.
“We have seen a particular interest in the jurisdiction from the maritime sector since Bermuda’s corporate income tax incorporates the international shipping income exclusion from the GloBE Rules.
“Bermuda has established itself as the hub for fintech companies over the past 7 years since the enactment of its digital assets business licensing framework, and it is expected that the favourable market for investment in the US will result in considerable investment in the sector and ultimately result in M&A activity as the industry grows and consolidates and opportunities for VC exits in startups arise .
“We would expect the resurgence of IPOs to continue in 2025 given the US election results, confidence in the US market, as well as the strong pipeline of deals that were delayed in 2024 which are expected to be revisited.”
