M&A activity involving global insurance carriers fell to the lowest level since 2008 during the first half of 2025, with carriers reported to be increasingly cautious amid persistent geopolitical instability and inflationary pressures, along with broader macroeconomic headwinds.
The data, from law firm Clyde & Co, showed that there were 95 deals completed during the first six months of 2025, the lowest figure since the financial crisis in 2008. This was down from 106 during the first half of 2024 (the previous lowest H1 figure recorded by Clyde & Co) and represented a significant drop-off from the 10-year H1 average of 192 deals.
According to Clyde & Co, appetite for major transactions among insurance carriers is severely limited in the face of economic and geopolitical challenges, while large deals are also being discouraged by high valuations.
Private equity interest has also dropped off, along with cross-border activity, influencing a growing preference for smaller bolt-on deals, domestic consolidation, internal capital deployment strategies and repurchase programmes.
The figures continue a downward trend that saw just 204 transactions completed worldwide in 2024, down from 346 in 2023 and the lowest annual figure since Clyde & Co began tracking M&A activity in 2009.
While M&A involving carriers has fallen, Clyde & Co noted continuing activity involving managing general agents (MGAs), with strong investment into platforms across Europe, North America and parts of the Middle East.
Clyde & Co reported that the UK and Europe, which saw 56 transactions in 2024, have continued to experience subdued levels of activity, with carrier transactions being outstripped by intermediary and broking deals so far this year.
North America led in 2024 with around 69 carrier deals, a trend that has also continued in 2025, with the region once again recording the most transactions at 35
Despite the sluggish dealmaking figures, Clyde & Co partner and global head of corporate insurance Peter Hodgins suggested that activity could pick up during H2: “Getting deals done is hard and they are taking longer to complete. But there’s evidence to suggest that pent up demand from carriers looking for strategic growth will result in higher activity in the second half of the year.”
According to Hodgins, there is “evidence that international carriers are readying themselves for M&A that gets them access to higher growth emerging markets”.
He added: “The MGA story will continue into the second half of the year and into 2026, with continued aggregation of multi-jurisdictional capabilities that grants carriers access to new markets.”
Find out more about M&A trends in the UK insurance sector:
Insurance M&A in the UK - has broker activity peaked?
Slow start to 2025 for UK insurance M&A
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