UK and Ireland insurance M&A entering “a new phase”

M&A activity in the UK and Ireland’s insurance sector continued to shift during 2025. Despite the region remaining the most active for insurance M&A last year, the focus of dealmaking is increasingly moving towards continental European markets.

According to a new analysis from FTI Consulting, there was strong M&A activity across the European M&A insurance industry in 2025. 789 transactions were announced across the insurance brokerage, managing general agent (MGA), insurance service provider and carrier markets, up by 14 per cent from 694 in 2024.

The UK and Ireland remained the most active region, with 219 deals, but this figure reflected a 23 per cent drop from the previous year and represented one of the lowest deal totals recorded in the region over the past five years.

According to Jeremy Riley, Senior Advisor in FTI Consulting’s EMEA Insurance M&A practice, the UK and Ireland’s insurance M&A market “has entered a new phase”, with activity remaining strong but “fewer big deals around to command investor attention.”

He continued: “We have seen several years of rate-driven revenue growth, however carriers, MGAs and distribution businesses are now operating in soft market conditions where performance will need to come from genuine, underlying growth and delivering operational efficiencies.”

In contrast, FTI Consulting recorded significant dealmaking across continental European markets, including the DACH region (Germany, Austria and Switzerland), Benelux, Italy, France, Iberia, Central and Eastern Europe and the Nordics.

DACH was the second most active region in 2025, recording 143 transactions, up by 35 per cent from 2024, while Iberia was ranked third with 141 deals, up 21 per cent compared to the previous year.

Jeremy Riley said that the DACH region was continuing to “set the pace” for insurance M&A in Europe, while there were also rising activity levels in areas including Italy and Central and Eastern Europe.

He added: “The next chapter in European M&A will be defined by buyers who are more selective, more strategic and increasingly seeking to operate cross-border.”

Insurance brokers and service providers accounted for more than 87 per cent of all deals last year, with 596 broker transactions and 94 service-provider deals.

Private equity firms continued to be active buyers during 2025, recording 69 deals, up from 61 in 2024. PE-backed portfolio company acquisitions also increased, rising from 376 deals to 402, making this the most active buyer class once again.

Non-PE-backed strategic buyers were also involved in higher levels of dealmaking, completing 318 transactions compared to 257 in 2024. According to FTI Consulting, this reflected the continuing appetite among both regional operators and global consolidators to build scale, expand geographically and fill product gaps through M&A.

A key trend identified in the report (and previously explored in our in-depth examination of UK insurance M&A) was that PE firms, PE-backed platforms and strategic buyers are increasingly shifting away from conventional roll-up and buy-and-build M&A strategies.

Acquisition strategies are instead focusing on more targeted deals for specialty brokers and MGAs offering scalable benefits across portfolios, as well as the ability to diversify both geographically and across product lines.

Jeremy Riley commented: “The insurance distribution sector is now defined by unprecedented PE ownership, however, many of these funds are approaching the end of their investment cycles, which will lead to a wave of exits and strategic repositioning in 2026.”

“We are also in a period where refinancing needs will create selective buyer opportunities. All this points to an active 2026 market, but one that will favour well-capitalised buyers with clear strategic objectives who can move quickly and can optimise performance under new ownership.”

Read our outlook piece examining key trends for UK M&A in 2026

See financial services business for sale in the UK

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