Mergers and acquisitions (M&A) involving global insurance carriers declined sharply in the first half of 2025, with the number of completed transactions falling to the lowest point since the 2008 financial crisis, according to data from law firm Clyde & Co.
A total of 95 deals were completed during the six-month period, down from 106 in the same period in 2024 and well below the 10-year H1 average of 192.
The slowdown reflects a cautious stance from carriers amid persistent geopolitical instability, inflationary pressures, and broader macroeconomic challenges.
Clyde & Co noted that carrier appetite for major transactions remained limited, with high valuations further discouraging large-scale moves. Interest from private equity bidders also declined, contributing to a preference among carriers for smaller bolt-on acquisitions, share repurchase programmes and internal capital deployment initiatives.
While select transactions were completed, including Sentry Insurance’s US$1.7 billion purchase of The General from American Family Insurance, and Markel’s acquisition of UK-based marine MGA MECO, cross-border activity was limited.
Most carriers focused on domestic consolidation, with a number of small-scale tie-ups in Bermuda serving as examples of this trend.
Clyde & Co’s findings last year indicated that M&A activity across 2024 dropped to a 16-year low, with only 204 transactions completed globally – down from 346 the year before. This marked the lowest annual total since the firm began tracking activity in 2009.
Despite the broader slowdown in carrier-led M&A, investment activity in managing general agents (MGAs) remained comparatively resilient. Clyde & Co noted that capital continued to flow into MGA platforms across North America, Europe and parts of the Middle East.
Carriers and private investors were reported to favour the lower capital intensity and underwriting agility offered by MGAs, with some of the larger strategic buyers continuing to build out specialist MGA networks in anticipation of long-term returns.
The geographic spread of M&A volume remained consistent with 2024 trends, where the US led with approximately 69 deals for the year. That compared with 56 across the UK and continental Europe, 39 in the Asia-Pacific region, and 17 across EMEA, including the Middle East.
Peter Hodgins (pictured above), partner and global head of corporate insurance at Clyde & Co, said several structural factors continued to delay or derail transaction processes.
“Getting deals done is hard and they are taking longer to complete,” he said. “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.”
According to Clyde & Co, regional activity was also uneven. North America recorded the most deals at 35, followed by EMEA with 29, APAC with 25, and Latin America with just four. Of the total, 21 deals were classified as cross-border transactions.
In Japan and other parts of Asia, share buybacks were a recurring feature, with listed carriers responding to depressed equity prices. Clyde & Co reported this trend as part of a broader shift toward internal capital allocation strategies in place of external growth.
Activity in the UK and continental Europe remained subdued, with intermediary and broking transactions outpacing those involving carriers. In the Middle East, life insurance transactions were more evident, particularly as international firms sought entry points into regional health and protection markets.
Hodgins added that market signals point to a possible recovery in activity. He said that a number of large carriers had publicly stated acquisition intentions, while high-profile sales processes were ongoing.
“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,” he said.
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