After a decade of frenzied consolidation in the UK insurance distribution sector, M&A strategies are undergoing a quiet transformation. Brokers and managing general agents (MGAs) remain in high demand, but buyers are increasingly focused on smaller targets, international expansion, and long-term value creation through integration and technology.
"The UK broker and MGA space has been consolidating rapidly for over ten years," said John Nisbet (pictured left), managing director, at MarshBerry UK. "The low-hanging fruit is gone, so we're seeing buyers shift to adjacent markets like employee benefits or risk consulting, and execute a higher volume of smaller deals."
In today's market, the mid-sized brokerage, typically 40 to 50 staff, has largely disappeared from acquisition pipelines. Buyers are now pursuing multiple micro-deals to move the needle. Nisbet points to JMG Group's recent activity: "They've completed about 10 acquisitions in six weeks. These are small businesses, and you need that volume to sustain growth."
While scale remains attractive, the path to premium valuation is changing. Matthew Poli (pictured right), a partner at Kennedys Law, cautioned against pursuing growth without purpose. "Every deal needs a reason for being. Whether it's new markets, capabilities, or clients, the most successful acquirers align M&A with their broader strategy," he said.
Nisbet echoed this sentiment, noting that platforms built solely on aggregation risk disappointing outcomes. "AssuredPartners is a good example,” he said. “They did hundreds of deals but didn’t integrate them into a coherent business. When they exited, they didn’t get the valuation they wanted."
Private equity remains the dominant force behind most transactions in the UK insurance distribution space. "More than half of M&A activity is PE-backed," said Nisbet. "Direct investments, like Bain with Jensten, are rare. But most of the big acquirers - PIB, Howden, SRG - are backed by private equity."
Poli emphasised PE's strategic role in shaping the market. "Private equity likes asset-light industries like insurance distribution, with forecastable, recurring revenue. Their roll-up strategies also allow for attractive deal structures that defer payout while promising upside."
As domestic supply tightens, UK consolidators are looking abroad. "You're seeing UK platforms backed by PE spending more time on overseas acquisitions," Nisbet said. "They need fuel, and they're finding it in less mature, more fragmented markets across Europe."
Technology and data aren't always the headline reason behind an acquisition, but they're becoming essential to post-deal success. "AI and insurtech aren’t just nice to have anymore," said Poli. "They drive compliance, improve EBITDA, and support sustainability. Buyers know they can extract more value from a business when they apply the right tools."
For MGAs, the digital edge is even sharper. "MGAs are nimble and can scale fast," said Nisbet. "They're embracing tech and big data more readily than brokers, especially in underwriting and pricing. That agility helps them compete with traditional carriers."
In broking, the gains are often more marginal, automating admin, improving compliance, or refining customer targeting. But large consolidators are increasingly investing in their own tech infrastructure and applying it across acquisitions.
While some acquirers still chase volume, others are retooling for long-term value. "Not every buyer has received the memo," said Nisbet. "But we are seeing a real shift toward integration, cultural alignment, and margin improvement."
With valuations increasingly tied to coherence rather than just size, the most successful platforms will be those that combine strategic intent, operational discipline, and the digital maturity to scale smarter, not just faster.
