PE activity drives late Q3 surge in insurance broking M&A

Private equity activity last month drove a late flurry of insurance broking M&A at the end of Q3 2025. However, activity was down compared to the previous quarter, while deal volume in the first three quarters of 2025 was significantly behind the same period of 2024.

According to a new report from MarshBerry, there were 10 announced transactions in the UK insurance broking market during September 2025, making it the busiest month since April. This late flurry ensured that Q3 2025 ended with 25 deals.

However, this was down from 30 announced transactions during Q2 2025 and means that the total deal volume for the first three quarters of the year stands at just 75, 34 per cent lower than the 114 deals recorded during the first three quarters of 2024.

The 10 deals recorded in September meant that the month slightly exceeded the long-term monthly average of 9.6. The resilient activity seen during the month was largely the result of private equity investment, with nine of the 10 deals involving private equity-backed buyers.

After three quarters of the year, private equity-related activity accounts for just over half of all transactions, putting 2025 so far roughly in line with 2024. September’s PE-linked activity included one of the year’s biggest deals to date, Bain Capital’s acquisition of Jensten from Livingbridge.

The acquisition of the 1,000-strong firm makes it the biggest UK insurance distribution company by headcount to have been acquired this year. Following the acquisition, Bain Capital’s backing is expected to see Jensten undertake further M&A activity of its own in the UK market.

The deal was also the fourth UK transaction of the year involving private equity to be valued at £100 million or more, demonstrating that private equity retains significant confidence in the sector, despite a quieter year for M&A.

Another notable headline from September was significant activity by GTCR-backed insurance broker JMG Group. The group set a record for most completed deals by a single buyer in one month with six deals in September, including a triple swoop for brokers in the West Midlands, the Lake District and Scotland.

JMG Group’s acquisitions largely targeted smaller firms, with the deals adding a total of less than 30 employees to the group, reflecting its strategy of targeting smaller, high-value acquisitions to integrate into its wider business.

Other active buyers during the month were Specialist Risk Group (SRG), which acquired Manchester-based Champion Insurance Group, and Partners&, which moved for Nottingham broker Citytypes (Pargeter & Associates).

MarshBerry noted that a slowdown from US-based acquirers has resulted in overseas buyers accounting for just 17 per cent of deals so far this year, the lowest since 2021. However, the report states that the hesitancy of US buyers is temporary and that international interest in the UK insurance market remains strong, with more overseas investment expected to enter the sector over the coming months.

While the total for 2025 is on course to ultimately be lower than 2024, UK insurance M&A continues to be driven by strategic activity and high-quality deals, with MarshBerry noting that large PE deals such as Bain Capital’s acquisition of Jensten demonstrate that the sector continues to attract long-term capital.

As consolidation continues in the UK's broking market, M&A activity is increasingly focusing on other areas of the insurance industry

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