More mergers and acquisitions could occur in the insurance industry during the next year, according to a survey released by accounting and consulting firm KPMG LLP. Insurance executives see their companies’ strong financial performances as putting them in a position to acquire other companies in the near future.

According to the 270 industry executives polled, 59 percent expect an increase in mergers and acquisitions, up from 38 percent a year ago. More than 40 percent said “strategic acquisitions” are their highest priority for investment, followed by technology (30 percent).

Most insurers say they are in a strong financial position. Travelers Cos. Inc. Chief Financial Officer Jay Benet said his company, the fourth-largest U.S. property casualty insurer, had total capital of $31.3 billion and a debt of only $6.7 billion. Marsh & McLennan Cos. Inc. CEO Michael Cherkasky told Reuters that his company, the largest insurance broker in the world, is more likely to consider acquisitions now that market multiples are at more reasonable levels.