Europe
UK
Middle East
Aviva’s acquisition of the Probitas platform in July 2024 marked a major carrier push into the Lloyd’s market, seen as a step towards CEO John Neal’s goal of attracting new composite capital. While this surge hasn’t materialised, interest - especially from US carriers - continues to grow, driven by a strong dollar and favourable conditions. Entry via acquisition or new Syndicates remains appealing.
Ongoing European consolidation
Regional and broker consolidation drove M&A activity in Europe last year, a trend set to continue. In Scandinavia, Sampo’s takeover of TopDanmark was a standout deal, while 2025 is expected to see more activity further south, particularly among brokers seeking to expand their footprint.
Deal volume and analysis by region: Summary of key insights
Americas
APAC
There is so much pressure on talent across the insurance industry. There's predicted to be and we're already seeing significant losses of senior talent through retirement in the coming years, continuing a trend which has become more pronounced with each year of this decade. The market is hitting a bit of a pinch point around talent, and that’s coupled with a younger demographic, which is a much more mobile workforce, driving up salaries.
Angela Flaherty, Partner, London
Interest in Lloyd’s and the opportunity to grow internationally and also tap into the demand for specialty business is increasing, particularly from the US. Major European or Japanese carriers, which currently lack a specialty arm are also exploring the potential that a presence in the market offers. Businesses which offer both Lloyd’s and company market paper are likely to be in high demand.
Climate driven-diversification
Insurers will seek to diversify amid climate risks, hedging against wildfires and floods. MGAs offering non-correlated growth opportunities will be in demand, particularly in energy underwriting for renewables. The expanding run-off market may align with carriers divesting from casualty or property lines.
Talent challenges
The UK insurance sector’s talent war will persist, fuelled by wage inflation, retirements, and recruitment struggles. Demand for specialty underwriters will rise, intensifying executive and team moves. M&As and MGAs will be key talent access points, with deal activity prompting further mobility.
Diversifying in the face of climate change
The impact of climate change on property heavy books of business will see major insurers look to diversify their offerings, hedging against the impact of wildfires and floods. MGAs which can offer a means to provide access to growth areas in non-correlated lines will be highly sought after both as destinations to deploy capital and, potentially, as bolt-on acquisitions. Demand is likely to be highest for energy expertise which offers the ability to tap into requests for renewable covers and underwriting to support the energy transition. The increasing scale and sophistication of the run-off market will also see businesses in this space look to acquire larger books, buoyed by their success and experience to date, this may provide a natural alignment with carriers seeking to divest from casualty or property lines which no longer reflect risk appetites.
Italy’s key carriers are poised to push for greater market share, reshaping its retail insurance space, while Germany’s long-quiet mutual market is undergoing a wave of mergers, spurred by regulatory changes like DORA and CSRD. Meanwhile, multinational carriers are scrutinising Central and Eastern European books, potentially driving consolidation, especially in Poland.
Technology integration remains a barrier to multi-territory acquisitions, with majors wary of high costs and DORA compliance risks.
MGAs remain in high demand, with major players like Allianz and Swiss Re increasing investment. 2025 looks promising for entrepreneurial underwriters, though carrier startups face tougher funding conditions, as struggles from WeFox and others have made investors cautious.
Andrew Lucas, Partner, London
In Europe, Italy and Germany, in particular, look set for further market consolidation. It is likely to be small scale, but there is a growing trend of in-market consolidation.
Eva-Maria Barbosa, Partner, Munich
Tech-washing and the cost of integrating subpar systems has made acquirers rightly cautious. For sellers, price expectations, based on the number of customers you have, the size of your business or the number of branches can be severely diminished by outdated technology.
Eva-Maria Barbosa, Partner, Munich
The Middle East’s fragmented insurance market remains resistant to consolidation despite stricter 2023 regulations. Regulators are balancing market penetration with stability, but firmer action is expected in 2025, following KSA’s interventionist stance.
Regional champions are emerging as international insurers retreat from onshore markets, shifting to reinsurance-driven models and boosting DIFC’s role as a hub.
Cyber, warranty & indemnity, and trade credit insurance are growing, while recent floods exposed weaknesses in smaller insurers. Larger players managed losses through reinsurance, but legal disputes over coverage mismatches are expected in 2025.
The UAE regulator is taking a very pragmatic approach to dealing with the overcapacity we see in the region with too many carriers. It has taken a cautious approach thus far, but we expect it to exercise the powers at its disposal more forcefully in 2025 and beyond.
Peter Hodgins, Partner, Dubai
Last year saw a 25% drop in transaction volume across APAC compared to 2023. Key markets like Hong Kong and China have reached saturation, making entry difficult for new investors. Established players prioritize data analytics over acquisitions.
Geopolitical tensions, especially between the US and China, continue to hinder M&A activity, with major carriers exercising caution in an unpredictable economy.
Spotlight on Hong Kong
The new risk-based capital regime may push smaller insurers to offload unprofitable businesses, creating M&A opportunities in 2025. Increased consumer affluence is driving growth in health and medical insurance, attracting foreign investment and boosting consolidation.
I would like to think that the Australian M&A market is going to pick up in 2025, but realistically I think that the first six months of this year will continue to be quite muted. The large, global transactions we’ve seen over the last few years have generally been the acquisition of the Australian arms of larger carriers, but currently there doesn’t seem to be as much of an appetite for these big deals as there once was.
Dean Carrigan, Consultant, Sydney
US deal flow in 2024 was driven by fewer but high-value transactions, fueled by private equity, technology-driven plays, and market consolidation.
Key market trends
Insurance IPO activity increased and is expected to gain momentum in 2025, supported by deregulation under the Trump administration. Sidecar capital played a key role in life sector M&A. Strong valuations persisted due to competition, rising capital costs, and economic uncertainty.
Broker and MGA M&A remained active, while the Excess and Surplus market thrived due to easier entry compared to admitted markets. Sovereign wealth funds showed growing interest in insurance as an asset class. Technology-driven deals surged as insurers explored AI’s potential.
Challenges and outlook
M&A growth faces risks from climate change, global trade tensions, cyber threats, and talent shortages. Despite these concerns, the 2025 outlook remains strong, with new listings on the horizon and continued foreign investment, driven by low regulation and a strong Dollar.
The difficulty faced by acquiring organisations with respect to successfully integrating technology is a top issue that nsurance mergers grapple with that frequently results in a prolonged integration period. We have seen insurers working through integration issues many years after a deal has closed. By utilizing new technologies, insurers can reduce this friction, which should result in better returns on investments in the short and longer-term.
Marc Voses, Partner, New York
Spotlight on Australia
M&A activity slowed in 2024 due to geopolitical uncertainty, market volatility, and reduced global deal appetite. Stricter antitrust laws and regulatory oversight from APRA and ASIC further constrained acquisitions.
Despite this, rising property insurance rates, driven by extreme weather, and a strong life insurance market are expected to attract foreign investment.
Geopolitical tensions and high market saturation across the APAC region have prompted carriers to think twice about conducting M&A activity in the last year. However, there are a number of factors which may lead to an increase in transactions as we head further into 2025. The introduction of the risk-based capital regime in Hong Kong in 2024 means that we are likely to see carriers take advantage of opportunities to acquire books of business offloaded by their smaller counterparts, whilst the health and medical insurance markets continue to perform strongly and entice investment.
Joyce Chan, Partner, Hong Kong
Deal volume and analysis by region
Deal volume and analysis by region
Deal volume and analysis by region
Latin America
Tech appetite, specialty capabilities, and regional consolidation drove Latin America's 2024 dealmaking. Improved economic conditions and a stable cost of capital boosted investor confidence, with top carriers acquiring insurtechs for digital expertise. Regulatory shifts also spurred strategic acquisitions.
Brazil and Mexico are set to lead M&A in 2025, with regional consolidation and global entrants fuelling activity. However, political instability and elections, like those in Chile, may curb deals in some countries.
Economic stabilisation, favourable regulatory changes, and a growing middle class demanding diverse insurance products are catalysing M&A activity across the region. Subject to the effects of a potential US-China trade war redux, we expect to see a number of deals done in the health and life insurance sectors in 2025 as companies seek out diversification, while the growing insurance broker market will be subject to dealmaking too.
Franco Acchiardo, Partner, Chile
Deal volume and analysis by region
Talent Challenges
The UK insurance sector’s talent war will persist, fuelled by wage inflation, retirements, and recruitment struggles. Demand for specialty underwriters will rise, intensifying executive and team moves. M&As and MGAs will be key talent access points, with deal activity prompting further mobility.
Diversifying in the face of climate change
The impact of climate change on property heavy books of business will see major insurers look to diversify their offerings, hedging against the impact of wildfires and floods. MGAs which can offer a means to provide access to growth areas in non-correlated lines will be highly sought after both as destinations to deploy capital and, potentially, as bolt-on acquisitions. Demand is likely to be highest for energy expertise which offers the ability to tap into requests for renewable covers and underwriting to support the energy transition. The increasing scale and sophistication of the run-off market will also see businesses in this space look to acquire larger books, buoyed by their success and experience to date, this may provide a natural alignment with carriers seeking to divest from casualty or property lines which no longer reflect risk appetites.
