EY UK Financial Services M&A Analysis for 2021
In 2024, the UK’s financial services industry saw a significant uptick in M&A activity, with a 26% increase in the number of deals compared to the previous year. According to EY’s latest financial services M&A analysis, UK banks, insurers, and asset managers reported 380 M&A deals in 2024, marking the highest annual volume since 2012. The total disclosed deal value also rose from £12.5bn in 2023 to £20.2bn in 2024.
Damian Hourquebie, UK Financial Services Strategy, and Transactions Leader at EY, explained that the surge in M&A activity was driven by economic recovery, rising market confidence, increased valuations, and a rise in inbound deals. While there are some uncertainties on the horizon, including macroeconomic factors and geopolitical tensions, the outlook for M&A activity in the UK financial services industry remains optimistic for 2025.
In terms of sector-specific activity, the number of banking deals increased from 53 in 2023 to 70 in 2024, though the total deal value slightly decreased. The insurance sector saw a significant rise in deals, with the number of deals jumping from 112 in 2023 to 188 in 2024. The wealth and asset management sector also experienced an increase in both the number of deals and total deal value.
In terms of foreign involvement, there was a rise in non-UK firms acquiring UK targets, with an increase from 54 deals in 2023 to 74 deals in 2024. On the other hand, UK firms acquiring overseas targets also saw an uptick in deals.
It’s important to note that the data covers transactions where the target is in banking, insurance, or asset management sectors, and equity investments are included while joint ventures are not. The analysis looked at deals that took place between January 1, 2024, and December 31, 2024.
Overall, the increase in M&A activity in the UK’s financial services industry in 2024 suggests a positive trend for the market, with potential for further growth and transformation in the year ahead.
