Insurance M&A Trends: Analyzing 2025 and 2026 Projections
Two firms monitoring insurance sector M&A activities have noted shifts in property/casualty insurance transactions last year, with varying interpretations of market dynamics. One observed a rise in momentum, while the other identified stability. Both firms agreed that a selective and strategic approach characterized 2025 transactions, and this trend is expected to continue into 2026.
Clyde & Co's annual “Insurance Growth Update” indicates a stabilization of mergers and acquisitions in 2025, spurred by a decline in interest rates and strategic acquisition approaches. The report recorded 211 global deals involving carriers and brokers, a slight increase from over 200 in 2024. This followed a significant drop from 346 deals in 2023, with volumes still trailing the average figures from the prior decade, according to the London Stock Exchange Group.
Meanwhile, Deloitte's “2026 Insurance M&A Outlook: Eye on the Ball” focused on the U.S. and Bermuda, tallying 455 transactions in 2025, including 411 broker deals, 26 property/casualty carrier deals, and 11 in life and annuity insurance. Although broker and property/casualty carriers saw double-digit declines in activity compared to 2024, the total dollar value for property/casualty carrier deals increased by 64% due to larger, more strategically significant transactions.
Both reports highlighted the strategic nature of P/C insurance carrier deals and forecasted similar patterns for the upcoming year. Deloitte pointed out that changes in the P/C insurance market might prompt defensive mergers, especially if favorable conditions coincide with rising operational demands. Clyde & Co underscored opportunities for diversification in specialized markets, citing Zurich Insurance Group's 2024 purchase of AIG’s travel business as an instance of consolidation aimed at strengthening its position in global business travel insurance.
Geopolitical instability, although not explicitly labeled by Clyde & Co, was recognized as a potential disruptor that may impact industry confidence and interest rates. This could increase the cost of capital and potentially dampen deal enthusiasm. Both Clyde & Co and Deloitte reported a decrease in deals in the Americas in 2025, with the U.S. still a major global deal driver.
The APAC region saw a notable increase in activity, with 59 deals compared to 39 in 2024. The region also led in mega-deals, including transactions exceeding $5 billion. Japanese insurers, following domestic portfolio optimization, have been active in overseas acquisitions, driven by substantial available capital. Clyde & Co anticipates continued deal activity in 2026, motivated by market fundamentals rather than individual transactions. Deloitte emphasized the importance of operational readiness and strategic clarity to capitalize on emerging opportunities.
Both firms foresee a continuation of deliberately and strategically driven deals, with insurers focusing on specialty lines such as energy transition and cyber risks. As companies enter 2026 with solid balance sheets and a calculated approach to risk and growth, M&A activities are expected to remain selective and strategically focused.