b'MERGERS & ACQUISITIONSPROPER T Y- C A SUALT Y SEC TOR North America and BermudaM&A activity general across most sectors of the global economy increased in 2021. This pick-up in transactional activity, however, did not extend to transactions involving property-casualty (P&C) insurance carriers in the US and Bermuda, which transactions were down year over year in 2021. COVID-19-related losses and natural disaster losses in the P&C industry were significant (with the current estimate reported to be around $45 billion on a global basis). These losses have contributed to a hardening P&C market. In light of this hardening market and uncertainty regarding the extent of losses to which a particular target may be exposed, many prospective buyers in the P&C space seem to have been taking a pause on M&A activity to instead pursue organic growth opportunities. Private Equity Capital Continues to Fuel Deal-MakingAs we have reported in previous years, the increasing presence of PE and other alternative capital continued to be a driver for M&A activity in the insurance sector in 2021. Brookfield Reinsurance achieved a significant milestone in the continued expansion of its insurance business by acquiring American National in an all-cash transaction valued at approximately $5.1 billion. American National offers a broad line of products and services, including P&C insurance for personal lines. Other major PE participants that have entered the insurance space include The Carlyle Group, Inc., which completed a number of acquisitions through its portfolio companies, such as the acquisition of PSA Insurance & Financial Services, and Blackstone, which completed multiple acquisitions in the life insurance space, including the acquisition of Allstate Life Insurance Company. [See Life SectorNorth America and Bermuda for greater detail].16|Global Insurance Industry Year in Review 2021'