Global insurance M&A hits historic low as market caution prevails
Global insurance M&A dropped to its lowest level since the 2008 financial crisis in H1 2025, as carriers shied away from major deals amid ongoing economic uncertainty, geopolitical risks, and regulatory pressures.
Completed deals fell below the ten-year activity average of 192 deals, falling even shorter than H1, 2024 with just 95 deals completed in the first six months of 2025, according to a new report by Clyde and Co.
Peter Hodgins, partner and global head of corporate insurance, said: “There are a host of factors putting the brakes on global carrier M&A including ongoing geopolitical tensions, tough economic conditions and regulatory uncertainty. Getting deals done is hard and they are taking longer to complete. But there’s evidence to suggest that pent up demand from carriers looking for strategic growth will result in higher activity in the second half of the year.”
Interest from private equity bidders is also reportedly waning.
Carriers in the US made selective acquisitions, with notable deals including Sentry Insurance’s $1.7 billion acquisition of The General from American Family insurance and Markel’s acquisition of the UK’s MECO, a specialist marine MGA.
Domestic opportunities, including several small-scale tie-ups in the Bermudian market, were favourable over cross-border deals, which saw little activity.
Deals in the Middle East remained muted despite some activity in the life sector prompted by international players seeking expansion into regional and healthcare markets.
Carrier activity in the UK and Europe was subdued, with non-carrier deals in the broking and intermediary spaces more evident.
North America posted the largest number of deals completed in the period at 35, compared to 29 across EMEA, 25 in the APAC region and just four deals in Latin America. According to the data, there were 21 cross-border deals completed over the period.
Share buybacks were a feature of the period, particularly in Japan and across Asia, as listed carriers sought to take advantage of relatively low share prices to buy their own shares.
A number of deals have been announced with expected completion in H2, including Zurich’s acquisition of AIG’s Global Personal Travel Insurance and Assistance business for $600m.
Hodgins added: “There are several large carriers in the market that have voiced their ambitions to make acquisitions this year. There are a number of high-profile processes that are continuing, while listed valuations may increase the appetite of some players to make inorganic moves. We also are seeing evidence that international carriers are readying themselves for M&A that gets them access to higher growth emerging markets. The MGA story will continue into the second half of the year and into 2026, with continued aggregation of multi-jurisdictional capabilities that grants carriers access to new markets.”
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