M&A activity in the UK is showing limited momentum, with deal volumes expected to end around a third lower than recent years, according to a report from MarshBerry.
Fewer transactions have been completed and the average deal size has reduced, leaving 2025 on track to record the lowest total value of announced M&A since at least 2019, unless a large transaction emerges in the final weeks.
Market update and deal activity
According to MarshBerry's John Nisbet (pictured), eight new transactions were recorded in November, bringing the year-to-date total to 95, compared with 144 a year earlier.
November transactions continued the trend toward smaller deals, Nisbet said. Of the eight, two were asset or book transfers, with only one involving more than 10 staff. Income represented across these transactions totalled less than £10 million, adding to 2025’s pattern of consolidation occurring mainly at the smaller end of the market.
With only five deals this year estimated above £100 million, and a higher proportion of transactions valued below £5 million, overall M&A value across 2025 is expected to fall well below the average of around £4 billion recorded over the past three years.
MarshBerry estimated that 63 of 95 deals so far, or around two-thirds, sit below the £5 million mark, the highest rate in five years.
Meanwhile, specialty intermediaries, including Lloyd's brokers and MGAs, continue to attract acquirer interest. Nisbet said these firms remain active in the M&A landscape due to growth potential and ongoing demand from private equity, overseas buyers and consolidators. Specialty accounted for 23% of deals in 2025 to date, the highest share in five years.
Notable transactions in November include Partners& acquiring Lloyd's broker 3 Dimensional Insurance, and Ripe purchasing holiday homes specialist Schofields, adding over 10,000 policyholders. Aquiline made a majority investment in Clearwater Underwriting, reflecting sustained investor appetite for MGAs at an early stage.
Outlook for 2026
Across EMEA, insurers have spent most of 2025 managing capital allocation in a market shaped by inflation, reinsurance cost pressure, and geopolitical risk exposures. Underwriting discipline has been a priority in commercial lines, while insurers continue to adopt technology and data-driven models to support distribution and pricing.
In Spain, for example, the sector has been navigating slow economic growth and rising protection demand, particularly for health and property cover. International insurers operating in Spain have also been reassessing capacity strategies in lines affected by climate events and regulatory shifts.
Looking ahead, Nisbet said that deal-making activity in the UK market appears most likely to remain driven by smaller firms, given that many mid-sized independents have already been absorbed through past consolidation.
