Europe's insurers are getting fired up about mergers and acquisitions. While $16bn of deals year to date is hardly a bonanza, add in Prudential's $35.5bn failed AIA bid, and RSA's ongoing pursuit of part of Aviva, and the sector would be one of Europe's most active. Both the UK and Dutch markets could see more deals ahead.

Europe's insurers are in good shape for acquisitions. Average solvency ratios exceed 200%; fears that new regulations will force sector-wide capital-raising have largely abated. Deal financing is available. Banks have committed to underwrite fully acquisition-related rights issues in excess of market capitalisation for Prudential, Resolution and RSA.