Global M&A activity decreases in first half of 2025

A recent report by Clyde & Co has shed light on the decrease in global insurance mergers and acquisitions (M&A) deals in the first half of 2025, with the Asia-Pacific (APAC) region ranking as the third highest in terms of completed deals.

Throughout the initial six months of the year, a total of 95 deals were finalized, as opposed to 106 deals during the equivalent period in 2024, falling short of the 10-year average of 192 deals.

Carrier caution prevailed during this timeframe, driven by a mix of geopolitical unrest, concerns about inflation, wider economic instability, and persistently high valuations. The interest from private equity bidders also dwindled, leading carriers to hold onto their funds and opt for smaller bolt-on deals, share repurchases, and organic investment ventures.

In the United States, carriers engaged in selective acquisitions, with some notable transactions taking place, such as Sentry Insurance’s $1.7 billion acquisition of The General from American Family Insurance. Moreover, Markel’s acquisition of the UK-based MECO, a specialized marine managing general agent (MGA), underscored the continued interest in the MGA sector. However, cross-border deals were scarce during the first half of the year, as carriers focused on domestic opportunities, including various minor collaborations in the Bermudian market.

In the Middle East, dealmaking remained relatively muted, with some activity observed in the life sector, driven by international entities seeking to expand into regional and healthcare markets. Carrier activity in the United Kingdom and Europe was subdued, with non-carrier transactions in the broking and intermediary realms being more apparent.

North America led the pack in terms of completed deals during the period, with 35 transactions finalized, compared to 29 in Europe, the Middle East, and Africa (EMEA), 25 in APAC, and merely four deals in Latin America. The data indicates that 21 cross-border deals were wrapped up during this period.

Share buybacks were a prevalent feature, particularly in Japan and across Asia, as publicly listed carriers capitalized on the opportunity to repurchase their own shares at relatively low prices.

The first half of the year concluded with several deals being announced, including Zurich’s acquisition of AIG’s Global Personal Travel Insurance and Assistance business for $600 million, set to be finalized in the latter half of 2025.

Peter Hodgins, a partner at Clyde & Company and the global head of corporate insurance, highlighted the various factors hindering global carrier M&A, such as ongoing geopolitical tensions, challenging economic conditions, and regulatory ambiguity. He emphasized that completing deals has become increasingly difficult and time-consuming, but there are indications of pent-up demand from carriers seeking strategic growth that could lead to heightened activity in the second half of the year. Numerous major carriers have expressed their intent to make acquisitions in the current year, and there are ongoing high-profile processes that may spur action in the market.

Hodgins noted the readiness of international carriers to engage in M&A activities that grant them access to high-growth emerging markets. He anticipates that the MGA trend will persist in the second half of the year and into 2026, with a continuous consolidation of multi-jurisdictional capabilities providing carriers with entry into new markets.