For Insurers

About insurer mergers and acquisitions

How mergers and acquisitions are reviewed

The Office of the Insurance Commissioner reviews proposed consolidation transactions to determine if an acquisition or merger is likely to be hazardous or prejudicial to protect Washington state's insurance market. We also consider:

  • How the consolidation may affect the insurer's ability to do business in our state
  • Financial solvency of the companies involved
  • Plans of the acquiring party to make material changes in the insurer’s business, corporate structure or management
  • Integrity of the persons who would control the operation of the insurer
  • Whether or not consolidation is in the best interest of consumers

Our review is generally completed within 90 days.

Under the federal Hart-Scott-Rodino Act, the Federal Trade Commission (FTC) and Department of Justice (DOJ) review proposed consolidations for anti-trust issues. These agencies have 30 days to determine if any divestment is necessary to protect a competitive market. Some FTC reviews may extend beyond 30 days if additional information is requested. Objections are sent to the DOJ for potential filing with the federal court.

In addition to our review, the Washington Attorney General's office may separately review the proposal for anti-trust issues at the state level if they find the proposed consolidation may significantly reduce competition or harm consumers.