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Wells Fargo was listed with "sharks" in NYT article re insurance industry consolidation. Mergers and acquisitions in the insurance industry will accelerate the consolidation of the industry, according to Joseph Treaster's article in the Sunday New York Times for 1/23/00.
Treaster quotes David D'Alessandro, the President/COO of John Hancock as saying that "its getting down to the eaters and the eatees." He points to the Congress' elimination of the long-standing legal barriers between banking, brokerage and insurance.
Efficiency is one goal of such mergers, says Treaster, citing company strategies of running two merged companies with the management of one. He quotes Jeff Sawyer, in charge of insurance at Deloitte Consulting: "Within the next five years, you are going to see a dramatically smaller number of American insurance companies."
At the time of this writing, the article was available in the online archives at nyt.com . The story, titled "Going Public Amid Sharks" includes a list of 19 public companies the Times nominates as "sharks," "predator or prey" and as "bait," and discusses which are more likely to eat and which to be eaten. Half of the "sharks" listed are banks or stock brokers.
How likely is Wells Fargo to be getting into the insurance business through such a purchase, in light of the talk of the possible merger with FTU and CMB?
Doug
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