(Alliance News) - Bank of America believes that consolidation in the Italian financial sector is set to regain momentum and could extend into the insurance industry.

In an interview with MF-Newswires, Lukas Poensgen and Eddie Martin, BofA's heads of EMEA M&A and EMEA leveraged finance respectively, highlighted how the environment is becoming favorable once again for corporate actions, thanks to increased stability in financial markets and improved visibility regarding the macroeconomic outlook.

According to Poensgen, the banking sector is still digesting the transaction between MPS and Mediobanca, but remains focused on scale, efficiency, technological investment, and long-term competitiveness. Italy remains a core market within this European dynamic. The insurance sector could also be swept up in this consolidation trend.

As reported by MF-Milano Finanza on Tuesday, Martin observes that groups such as Generali face the same strategic imperatives as banks, including operational efficiency, technology, and capital optimization, while improving financing conditions are encouraging new strategic reviews.

For BofA, the resurgence of M&A is not merely a cyclical phenomenon but reflects structural factors such as the need for greater scale, supply chain resilience, access to technology and data, and the repositioning of European energy and infrastructure systems. Furthermore, the reopening of financial markets has reduced execution risk, boosting boardroom confidence.

Over the next 12 months, the Italian sectors considered most exposed to consolidation are industrials, infrastructure, energy, and financial institutions. Experts also point to a growing distinction between companies benefiting from generative and agentic AI and those at risk of disruption, a dynamic that is attracting private equity interest toward traditional firms with stable earnings and predictable cash flows.

Finally, Martin emphasizes that financing conditions have improved, though they remain more disciplined than during the era of ultra-low rates, with a greater focus on leverage, cash flow visibility, and risk protection. In this context, Italy continues to attract foreign capital thanks to its industrial and mid-cap companies, often operating in specialized niches with a strong international presence, resilient cash flows, and solid customer relationships.

By Antonio Di Giorgio, Alliance News reporter

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