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Liberty Mutual Holding Co. Inc.'s agreement to buy Ironshore Inc. is a deal that could be a model for insurance mergers in the near term, industry analysts said.
The end of the presidential election quieted the uncertainty that hung over the insurance industry during the campaign season, insurance M&A adviser Grace Vandecruze said in an interview. The players know that interest rates are headed upward and have a sense of how politics in Washington is taking shape. Merger discussions among those on the sidelines will probably resume, said Vandecruze, a founder of Grace Global Capital.
"I think the buyers and sellers are waiting for the dust to settle to decide the next steps," she said.
Liberty Mutual's acquisition of Ironshore makes strategic sense for both parties. Liberty Mutual would get Ironshore's specialty expertise, and Ironshore would leave the investment portfolio of Fosun International Ltd. for an insurance parent.
"It makes better sense to have a more strategic...