Guy Carpenter’s Alexander Schnieders discusses trends in the (re)insurance M&A space
M&A activity across the (re)insurance sector is showing signs of increased activity. While interest rates have stabilised recently in many markets, expectations of further moderation and generally lower cost of capital continue to create a supportive environment for dealmaking.
In parallel, macroeconomic and geopolitical developments – including the recent emphasis on US tariffs – are part of the broader backdrop that market participants are factoring into M&A decision-making.
TRENDS FUELLING M&A MOMENTUM
Several factors are encouraging carriers to explore inorganic growth: Pricing has started to soften in key areas, many carriers are sitting on excess capital, and certain sponsor-backed platforms are approaching logical exit points. These elements are combining to create a favorable backdrop for acquisitions.
Investor interest remains high across the insurance value chain. Financial sponsors and alternative asset managers continue to pursue platform investments and bolt-ons, particularly in capital-backed structures. While the level of activity varies by company type, we are seeing strong momentum among both carriers and managing general agents (MGAs).
The re-emergence of the IPO market is also contributing to the rebound. Recent listings –such as Aspen, Slide and American Integrity – have demonstrated that the public markets are open again to insurance businesses with compelling growth stories.
IPOs not only provide an exit path for investors, but they also allow capital to be recycled into new M&A activity, further energising the deal environment.
WHAT WE EXPECT NEXT
Looking ahead, we expect elevated M&A levels across insurance subsectors and transaction types. Property and casualty carriers are likely to use M&A to gain scale and achieve product and geographic diversification in response to softening conditions.
Private equity is also expected to expand its footprint, applying the same platform-based risk aggregation strategies that proved effective in both the life insurance and P&C space –aggregating portfolios, optimising capital and driving scale across product classes.
International interest is also growing. Japanese carriers, for example, are redeploying capital from unwinding cross-shareholdings into stable platforms.
At the same time, structural themes such as climate risk, cyber and artificial intelligence are creating new entry points for investors and strategic buyers alike.
MGAs and brokers remain central to the deal landscape. Consolidation is being driven by private equity and a need for scale. MGAs with proven underwriting models and fee-based economics remain attractive, particularly those that can scale efficiently and support broader portfolio strategies.
That said, buyers are becoming more valuation-conscious, as expectations remain elevated.
Insurtech activity is returning selectively, with investors backing proven models with strong growth potential, although transaction volumes remain modest and targeted.
SPOTLIGHT ON LLOYD’S
Lloyd’s presents a compelling opportunity for strategic and sponsor-led M&A. Many private-equity-owned franchises are nearing the end of their investment cycles and are likely to come to market. These high-quality businesses offer global access, specialty expertise and syndicate-based infrastructure that remain highly attractive in today’s competitive environment.
HOW GUY CARPENTER CAN HELP
Guy Carpenter’s Capital & Advisory team combines seasoned M&A and capital-raising expertise with a leading global broking platform. The team has deep domain knowledge across the (re)insurance landscape, including M&A advisory, capital raising, strategic advisory, and business planning.
As a trusted partner to the insurance industry, we provide independent, conflict-free advice with a focus on the long-term success of our clients.
Our professionals offer integrated strategic and risk-advisory services designed to help insurance clients navigate complex business challenges and opportunities.