Call or email us anytime
(805) 484-0333
Search Guide
Today is Monday, May 05, 2025 -

Industry Insights

Paduda: What's Happening in Work Comp M&A?

  • National
  • -  0 shares

Increasing uncertainty about interest rates, employment, construction and the impact of tariffs are why we won’t see much in the way of acquisitions for the foreseeable future.

Joe Paduda

Joe Paduda

That said, things are changing so fast, “foreseeable” is less than six months.

Companies that were up for sale did not sell, mostly because sellers weren’t going to get the price they wanted. Buyers, who just last year were willing to pay healthy multiples (earnings multiplied by 13-15), are now reluctant to go anywhere near that number.

Expect one or two businesses in workers’ comp services will change owners in the next few months; not much else will happen till things settle down.

Meanwhile:

  • Direct written premium hasn’t changed at all over the last five years despite notably higher wages since COVID.
  • Losses for the top 25 insurers trended a bit higher late last year.
  • Excess reserves remain quite high.
  • Frequency continues its decades-long decline.

And here are two fun facts:

  • The two states with the lowest combined ratios are Washington and Ohio, both monopolistic states (you have to buy your work comp insurance from the state government).
  • California remains the largest WC state with more than a fifth of written premium.

What does this mean for you?

Uncertainty breeds stasis.

Joseph Paduda is the principal of Health Strategy Associates, a consulting firm focused on improving medical management programs in workers’ compensation. This column is republished with his permission from his Managed Care Matters blog.

No Comments

Log in to post a comment

Close


Do not post libelous remarks. You are solely responsible for the postings you input. By posting here you agree to hold harmless and indemnify WorkCompCentral for any damages and actions your post may cause.

Advertisements

Upcoming Events

  • May 12-14, 2025

    NCCI Annual Insights Symposium

    NCCI's Annual Insights Symposium (AIS) 2025 will deliver data-driven insights, providing workers c …

  • May 12-13, 2025

    CSIA 2025 Annual Conference

    The Board of Managers is excited to announce that the CSIA 2025 Annual Meeting and Educational Con …

  • Jun 11-13, 2025

    CCWC 2025 Educational Conferen

    For two decades, CCWC has assembled the key players in the workers’ compensation arena for what is …

Workers' Compensation Events

Social Media Links


WorkCompCentral
c/o Business Insurance Holdings, Inc.
PO Box 1010
Greenwich, CT 06836
(805) 484-0333