Insurance M&A Activity Stabilizes in 2025: Clyde & Co Report
Global insurance merger and acquisition (M&A) activity in 2025 stabilized following a significant decline in the previous year, according to Clyde & Co’s latest Insurance Growth Update. The report notes 211 finalized deals worldwide, a slight increase from 204 in 2024, although still below the 2023 peak of 346 transactions. This recovery underscores the industry's resilience amid easing interest rate challenges and a steadier macroeconomic environment.
In 2025, the M&A strategy focused on targeted, strategically coherent transactions instead of sheer volume. Clyde & Co highlighted that carriers and intermediaries approached M&A with caution by refining portfolios, adding capabilities, and carefully selecting cross-border expansions. Carriers exhibited more strategic selectivity, while intermediaries propelled much of the deal activity.
The insurance value chain saw contrasting approaches, with carriers avoiding transformational mergers. They favored strategic global transactions or local consolidations. In Europe, organic growth hurdles, due to industrial slowdowns and premium scrutiny by corporate buyers, led carriers to streamline operations and exit noncore areas rather than pursue aggressive expansion.
Intermediaries, such as brokers and managing general agent (MGA) platforms, maintained robust deal activity. These entities attracted investors with capital-light distribution models, minimizing the heavy balance sheet commitments typical of traditional insurers. This supported steady overall deal volume despite fewer large-scale consolidations by carriers.
Regionally, the Americas led with 77 transactions, cementing its role as a central hub for global insurance deals, though at a reduced rate compared to previous years. The UK and Europe saw stable activity bolstered by interest in Lloyd’s and the London market, while the APAC region experienced growth with deals rising to 58 from 39 in 2024, driven by Japanese insurers' outbound interest and regional diversification efforts.
In terms of transaction scale, 15 deals surpassed the $1 billion threshold in 2025, including seven mega-deals over $5 billion, primarily in APAC. There were 43 cross-border transactions, pointing to a cautious approach amidst regulatory hurdles and execution risks. Clyde & Co notes an increasing ambition for international expansion, particularly among intermediaries aiming to build multi-location networks.
Looking ahead to 2026, Clyde & Co forecasts a gradual increase in M&A activity. Carrier transactions are expected to remain disciplined, focusing on enhancing capabilities or optimizing portfolios, while intermediary consolidations sustain momentum. Despite potential geopolitical uncertainties and interest rate fluctuations, the industry anticipates continued strategically driven growth as insurers and brokers aim for disciplined expansion.