Global M&A Activity Surges in Q3 2025 with Insurance Sector Easing

Global mergers and acquisitions (M&A) activity surged in the third quarter of 2025, driven by increased deal value and improved performance, marking the strongest quarter since 2015.

Total deal value reached $371 billion, surpassing the combined value of the first half of the year, with North American transactions significantly contributing $246 billion. Larger deals dominated the market with eight deals exceeding $10 billion, the highest since 2018, and a rise in deals over $1 billion to 52. Despite overall positive momentum, the insurance sector experienced a slowdown in M&A activity in early 2025, recording the lowest deal volume since 2008. This decline is attributed to ongoing geopolitical instability, inflationary pressures, and high valuations, which shifted insurer focus to domestic consolidation, smaller acquisitions, and capital deployment strategies.

Investment in managing general agents (MGAs) showed resilience, maintaining capital flow across North America, Europe, and the Middle East. Regional analysis revealed strong outperformance in Asia-Pacific and Europe, while North America rebounded after a period of negative results. Industry sectors mostly experienced positive deal performance, except for Consumer Staples, Energy and Power, and Healthcare.

Analysis suggests that the M&A acceleration in 2025 is underpinned by lower financing costs and renewed growth confidence, although challenges persist from tariff volatility, geopolitical tensions, and regulatory complexities. Market recalibration and early integration planning during due diligence are expected to be critical for sustaining deal success and growth post-acquisition.