b'MERGERS & ACQUISITIONS SPAC sThe special purpose acquisition company (SPAC) market was again very active in 2021, despite some market and regulatory headwinds. In 2021, according to SPAC Insider, 613 SPACs completed their initial public offerings (IPOs), raising over $162 billion, compared to 248 SPAC IPOs in 2021, raising approximately $83 billion. Additionally, according to Refinitiv, powered by the London Stock Exchange Group, 221 business combinations, or de-SPACings were completed in 2021, compared to 92 in 2020. The insurance-focused SPAC market was also busy in 2021, with two insurance-focused SPACs going public in 2021 and four business combinations announced involving insurance or insurance-related companies.Market and Regulatory Developments in 20212021 saw a number of market and regulatory developments that have significantly affected whether and how de-SPAC transactions are getting done. In addition, litigation developments have increased the risk associated with completing SPAC business combinations.Market DevelopmentsSPAC IPO activity in 2021 was robust though it took a bit of a dip in the second and third quarters because of market and regulatory developments before recovering in the fourth quarter. For example, 317 SPAC IPOs were completed in the first quarter of 2021, 106 in the second quarter, 111 in the third quarter and 166 in the fourth quarter. While business combination activity also has been busy, there has never been a quarter with more than 100 completed business combinations and thus the number of SPACs searching for a target continues to increase. As of December 31, 2021, there were over 580 SPACs searching for targets. Since SPACs typically have only two years to complete a business combination or liquidate, this has causedSPAC sponsors desperate to do a deal to give up some of their economics.Historically, private companies looked to the SPACs trust and a common equity private investment in public equity (PIPE) to provide growth 24|Global Insurance Industry Year in Review 2021'