The UK insurance distribution sector recorded eight new mergers and acquisitions deals in January 2026, double the number announced a year earlier, according to advisory firm MarshBerry.
The uptick follows what the firm described as a multi-year low for sector M&A activity in 2025.
The 99 transactions announced last year marked the first time annual deal volume fell below 100 since 2017 – a sharp retreat from the 152 deals recorded in 2024 and 148 in 2023, both record years. Aggregate deal value in 2025 was just over £2 billion, the lowest since 2016 and roughly half the sector's average over the prior three years.
MarshBerry attributed the decline to both fewer deals and reduced average deal sizes, a trend that has persisted for several years. While 2025 included several large transactions involving private equity – including Seventeen Group, BPL, Jensten Group, and JMG Group – there were no deals exceeding £1 billion.
MarshBerry noted that while eight deals remain below the long-term monthly average of 9.6, the nature and size of January's transactions were notable. The month included new direct private equity investment into a commercial broking consolidation vehicle, a network deal, and a transaction involving an overseas acquirer.
Inflexion, a European mid-market private equity firm, acquired Essex-based Ascend Broking Group as the cornerstone investment for a new broker platform. Ascend specialises in commercial lines and healthcare and employs around 30 staff.
Inflexion said it plans to deploy £200 million over the next four to five years, aiming to build four to six regional broking hubs across the UK. The investment was made through Inflexion's Enterprise Fund VI, which closed at £975 million in 2024.
Capital Z's exit of Prestige to AUB Group for £219 million represents private equity capital leaving the sector while highlighting continued interest from overseas groups in the UK market.
MarshBerry reported that 35 insurance distribution groups were directly held by PE investors at the end of 2025, unchanged from the start of the year following five new investments and five divestments.
MarshBerry indicated that factors which suppressed deal volumes in 2025 – including limited supply of mid-sized targets, softening rates, and macroeconomic uncertainties – are unlikely to reverse quickly. The firm does not expect deal activity to return to 2023/24 levels in 2026.
However, capital to support industry consolidation remains available, with recent PE-backed buyers focused on domestic M&A. MarshBerry noted that industry fragmentation at the smaller end remains high, with ageing owners who will eventually need to sell.
