Clyde & Co Takes a Look at Mergers and Acquisitions Activity in 2025

Some in-depth analysis of volumes and trends in the M&A sector last year from Clyde and Co;

Global insurance M&A stabilised in 2025, as insurers and brokers took a more strategic approach to acquisitions amid falling interest rates and a realignment of strategic priorities, Clyde & Co’s annual Insurance Growth Update reveals.

Globally, 2025 saw 211 transactions completed, up from 202 last year, representing a halt to the rapid decline seen in 2024, but activity remained much lower than the peak of 346 deals in 2023. During 2025, we also saw 15 deals completed with a value of at least US$1 billion, and seven of these can be characterised as ‘mega deals’, where the total value exceeded US$5 billion.

Dealmaking was muted over 2024, which marked a 16-year low in response to global instability. Rather than a full recovery, 2025 has represented a stabilisation in markets such as the UK and Europe, with selective acceleration in APAC.

Activity has been driven by portfolio optimisation and geographic refocussing, as carriers have shifted their focus from a ‘growth at all costs’ mindset to evaluating strategic fits. This has highlighted a clear divergence in the market, with steady and selective carrier activity sitting alongside strong, continued momentum among intermediaries, brokers and MGA platforms.

N.B. 2025 saw four undisclosed deals complete with location anonymised hence a larger global value than the sum of regional deals.

Regional divergence

The APAC region not only saw the strongest acceleration in dealmaking in 2025 at 59 transactions compared to 39 in 2024, the region also held the majority (four) of mega deals valued at over US$5 billion. Japanese insurers have been active acquirers and, following domestic portfolio adjustments, have significant capital available for overseas expansion. Amongst APAC’s major deals, two took place in Japan, and Clyde & Co expects Japanese groups’ appetite for strategic, cross-border acquisitions to continue in 2026.

Yvonne Lam, Partner at Clyde & Co, said: “APAC was the standout region for insurance M&A in 2025, with deal activity rebounding strongly and several of the year’s largest transactions taking place in markets such as Japan.

In Australia, the insurance sector is benefiting from the stronger growth in the broader APAC region. We are seeing increased levels of strategic insurance M&A activity as new industry players enter the market in specialty areas and global groups look to restructure for streamlining of their regional operations.

With strong capital positions and a continued push for international expansion, particularly among Japanese insurers, we expect APAC to remain a key driver of global deal activity into 2026 across not only the traditional hubs of Hong Kong, Singapore and China but also emerging markets such as India and Thailand.”

Peter Hodgins, Partner at Clyde & Co, commented: “In 2026, we expect a cautious but clear uptick in insurance M&A, driven by pent-up demand and abundant private capital targeting strategic bolt-ons. Activity should stay US-led, but we’ll see more cross-border moves into higher-growth emerging markets, for example, in the Middle East, where access to licences, talent and local partnerships is commanding a premium”.

The Americas saw 77 deals in 2025, and while this fell from 92 in 2024, the Americas remains the global region with the largest number of overall deals. The United States continues to be a strong influence on global deal activity, with many multinational transactions driven by US-headquartered firms. 52 deals took place in the United States in 2025, and eight of these were valued over US$1 billion. US-based managing general agents (MGAs) and carriers are increasingly looking outward for expansion, and Clyde & Co projects this to continue in 2026. The LatAM region saw 6 deals complete in 2025, and whilst deal activity has been small, large populations, increasing access to e-banking and growing financial inclusion will be a key driver of growth opportunities in the year ahead in areas such as warranty and indemnity insurance.

In Europe, there has been renewed interest in accessing the Lloyd’s platform, with some companies now considering re-entering Lloyd’s after previously drawing back from the market. Europe saw 57 deals completed, compared with 56 in 2024, and Switzerland saw the biggest deal of the year valued at US$10.2 billion. Elsewhere, the Middle East and Africa had the smallest regional proportion of deals (15) in 2025, down from 17 in 2024.

According to the data, there were 43 cross-border deals completed over the year, and Clyde & Co expects cross-border activity to increase in 2026. This follows broader financial services sector trends, such as in the European banking sector, where the macroeconomic environment has resulted in favourable conditions for cross-border acquisitions.

Market drivers and looking ahead in 2026

In 2025, acquisitions were partly driven by strategic considerations, such as the drive to diversify or as an opportunity to add new capabilities and deepen expertise in market segments, such as speciality. We saw this begin in 2024 with Zurich Insurance Group’s acquisition of AIG’s travel business, which represented a move to cement its global position in business travel insurance. This trend in strategic moves to strengthen specialisations ramped up in 2025 and will continue to shape dealmaking in 2026.

Eva-Maria Barbosa, Partner at Clyde & Co, said: “This past year has almost been a “tale of two cities”, as activity has been selective and steady on the carrier side, but in the intermediary space, particularly with MGA’s and brokers, we’re seeing continued momentum and a real depth of interest in the sector. Insurers have sharpened their focus on specialty lines resulting in a clear emergence of strategic opportunities across energy transition-related risks, cyber and AI exposures, and contingency business tied to large multinational events. We expect this to continue into 2026 resulting in steady deal flow and targets thoughtful M&A.”

Companies are divesting from markets where they no longer see sufficient value or where regulatory changes allow them to operate more efficiently through alternative licensing structures. Meanwhile, firms are investing in regions where they believe they can achieve growth by diversifying their businesses or strengthening their position within niches. Significant deal flow stems from intermediaries, brokers and MGA platforms, and many of these businesses are backed by private equity and are actively seeking expansion opportunities.

Geopolitical instability, however, remains a risk to the trajectory of dealmaking, as it could disrupt sector confidence, and the prospect of rising interest rates could increase the cost of capital and dampen deal appetite.

In 2026, following on from the year’s first ‘mega deal’ with Zurich’s acquisition of Beazley, there is expected to be strong activity rather than a dramatic acceleration. Clyde & Co expects firms to seek expansion into Africa and parts of APAC outside the established hubs of Hong Kong, Singapore and China. With capital abundant, there will be continued momentum as insurers and brokers continue to pursue growth opportunities.