Union bank

Record mergers and acquisitions between credit unions and banks planned for 22; MassMutual Reinsurance Agreement

Industry Spotlight: Global Financials is a weekly digest of exclusive banking, financial services and insurance industry news and analysis from S&P Global Market Intelligence.

United States and Canada

* Record number of agreements between credit unions and banks expected in 2022

Thirteen purchases of banks by credit unions were announced in 2021 for a total of $5.89 billion in total assets among the targets. Two transaction advisers who work on bank credit union acquisitions predict about 20 such announcements in 2022.

* Active banking M&A market favors Texas in 2022

US bank M&A activity is expected to remain strong in 2022. Texas remains a likely hotbed of activity with its growth profile and large number of community banks.

* CD plummeting, borrowing unlikely to increase soon as banks remain afloat with cash

Banks have reduced their dependence on certificates of deposit and loans to negligible levels and balances look unlikely to rebound soon despite the prospect of higher interest rates on the horizon.

Latin America

* Few financial M&A deals in Latin America expected in 2022 after a 33% YoY decline in Q4’21

The number of deals totaled 26 compared to 39 in the last quarter of 2020, compared to 29 in the third quarter of 2021, according to data compiled by S&P Global Market Intelligence.

Europe, Middle East and Africa

* Irish lenders dominate biggest deals amid spike in European bank mergers and acquisitions in 2021

The withdrawal of NatWest and KBC Group from the Republic of Ireland led to three deals with a combined value of more than 15 billion euros, according to data from S&P Global Market Intelligence.

* Where Andrea Orcel’s UniCredit redesign may run into a problem

The success of the Italian lender’s three-year strategy will hinge on a favorable economic environment in the eurozone and continued political stability in Italy after the upcoming elections.

* ING France retail buyer will receive part of the revenue of €266m per year

The French business of Dutch bank ING had total assets of €11.57 billion at the end of 2020, up from €12.06 billion two years earlier. ING will sell the retail division.

Asia Pacific

* Chinese green bond issuance is expected to cross the $100 billion mark in 2022

More Chinese issuers are expected to flock to the green bond market in 2022 thanks to government initiatives to broaden the investor base and encourage bank lending to energy transition projects.

* United Overseas Bank seeks to expand in Southeast Asia with Citigroup assets

United Overseas Bank’s nearly $3.6 billion acquisition of Citigroup’s consumer banking business in four Southeast Asian countries will allow the Singaporean lender to strengthen its footprint in high-growth emerging markets.

* Asian banks could sell more bonds in 2022 as demand for credit increases

Debt raising activities by Asia-Pacific banks could regain momentum in 2022 as the ongoing recovery from the COVID-19 pandemic is expected to boost credit growth and capital demand, particularly in China .

Global Insurance

* MassMutual’s $14 billion reinsurance deal bolsters industry’s capital efficiency push

The company and various third-party investors have partnered to form a new Bermuda-based reinsurer that will initially help support an individual annuity business that has grown significantly through a recent merger and acquisition deal.

* Insurtechs to put more emphasis on underwriting in 2022 – industry official

Pie Insurance Co-Founder and CEO John Swigart sat down with S&P Global Market Intelligence to discuss insurtech’s plans for 2022 and key trends expected to persist for insurtech and across the insurance industry .