European insurance mergers and acquisitions increase by 20% in 2024, according to FTI Consulting

A recent report from FTI Consulting has indicated that the European insurance mergers and acquisitions (M&A) landscape was robust in 2024, with a significant increase in announced deals compared to the previous year. The report highlights a record 694 deals, marking a rise of over 20% from the 574 deals recorded in 2023.

Broker acquisitions were identified as a key trend, fueled by organic growth and financial arbitrage strategies. In 2024, broking and service providers made up the majority of transactions, accounting for 627 deals, representing 90% of all European insurance M&A activity throughout the year.

The UK and Ireland emerged as the top regions in terms of deal activity with 284 transactions. However, due to the maturity of these markets and a scarcity of high-quality targets, investor attention has shifted towards continental Europe. The region has seen the emergence of established consolidation platforms and new buy-and-build strategies, attracting investor interest.

Notably, the Iberian market surpassed the DACH region (Germany, Austria, Switzerland) to become the second most active market with 117 announced deals, driven by strong consolidation efforts in the region.

Private equity (PE) interest in asset-light insurance businesses continues to drive larger deal sizes and increased transactional funding. FTI Consulting’s report indicated a total of 437 PE-backed transactions across Europe in 2024, marking a 20% increase from the previous year.

André Frazão, Head of the EMEA Insurance M&A practice at FTI Consulting, commented on the record-breaking year for insurance M&A deals in 2024, emphasizing the market’s resilience and opportunism. Despite some concerns regarding a potential slowdown, the UK and Ireland maintained their lead in deal activity, thanks to their position as the largest insurance market in the region with a high number of broker and MGA consolidation platforms.

While Europe’s insurance market remains active, Frazão highlighted the continent’s emerging hotspot status due to significant market fragmentation. He predicted a continued trend of consolidation in 2025, driven by private equity investments, particularly in the broking sector, despite economic challenges. The year began with a strong deal pipeline, indicating another busy year ahead in the European insurance sector.