Significant Mergers and Acquisitions Shaping the Insurance Sector in 2025
In 2025, mergers and acquisitions (M&A) continued to dominate the insurance sector's discussions. Major brokerage firms like Marsh, Aon, and Arthur J. Gallagher announced or finalized significant acquisitions in 2024, maintaining industry interest in these consolidation trends. Over the past year, the insurance landscape experienced substantial M&A activity, indicative of ongoing consolidation trends.
Brown & Brown's Acquisition of Accession Risk Management
A notable M&A development was Brown & Brown Inc.'s strategic decision in June to acquire Accession Risk Management. This acquisition oversees specialty brokerage Risk Strategies and wholesaler One80 Intermediaries, for approximately $9.8 billion. Accession was ranked eighth on Insurance Journal's 2025 list of Top 100 Independent Property/Casualty Agencies. Other significant transactions included Baldwin Group's acquisition of CAC Group for $1.03 billion, highlighting Baldwin's ninth place in the ranking.
Active Market Movers
Trucordia and World Insurance Associates maintained high levels of activity in transactions during 2025. Marsh McLennan Agency expanded its footprint by acquiring various agencies across the United States. Additionally, Willis Towers Watson's acquisition of Newfront for $1.3 billion late in the year exemplified ongoing consolidation efforts. Cross-border M&A activities included South Korea's DB Insurance Co.’s agreement to acquire US-based Fortegra Group for $1.65 billion.
Diversifying Acquisition Strategies
The M&A activity wasn't confined to brokerages alone. AIG acquired the retail commercial insurance renewal rights of Everest and collaborated with Onex Corp. to acquire Convex Group. In August, Sompo Holdings bolstered its international presence through a $3.5 billion acquisition of Aspen Insurance Holdings.
Legal Disputes Over Talent Migration
Several major brokerages, including Aon, Marsh, Willis Towers Watson, and Brown & Brown, filed lawsuits against Howden US due to allegations of employee poaching and trade secret misappropriation. Brown & Brown accused Howden of attracting over 200 of its employees, while Marsh took legal action against its former employees who moved to Howden US, reflecting the industry's competitive dynamics over key personnel.
Third-Party Litigation Funding Concerns
Industry professionals are concerned that third-party litigation funding could potentially drive up insurance costs due to increased litigation expenses. This issue has drawn the attention of federal lawmakers, resulting in proposed reforms aimed at enhancing transparency in litigation financing.
Impact of Trade Policies
The insurance industry is assessing the potential impact of US trade policy changes, including import tariffs, on its cost structure. Tariffs are believed to have the potential to influence insurance rates and broader economic conditions.
Brand Evolution in the Industry
Among the most discussed industry developments was Liberty Mutual's decision to retire the Safeco brand, which was associated with independent agent sales. This branding transition, effective from 2026, reflects evolving brand strategies within the sector.
Leadership Changes and Organizational Impact
In leadership movements, John Neal's unexpected departure from anticipated roles at Aon and AIG was notable. Neal's career developments underscored the dynamic nature of executive leadership within major insurance firms.
Cybersecurity Threats
Cybersecurity remains a critical focus for the industry, with emerging threats such as the Scattered Spider group targeting US insurance companies through sophisticated schemes. Vigilant cybersecurity measures continue to be imperative for safeguarding industry operations.
These developments underscore the dynamic and evolving nature of the insurance sector. Industry professionals are closely monitoring how these factors impact market operations, regulatory environments, and competitive positioning.