Guy Carpenter’s Laurent Rousseau and Alexander Schnieders look at the encouraging climate for dealmakers
The momentum in M&A activity across the (re)insurance sector has clearly picked up. This is driven both by P&C sector-specific factors and macroeconomic factors. As the P&C pricing cycle slows in insurance and reinsurance, well-executed inorganic growth becomes an attractive growth option. Additionally, while interest rates have stabilised recently in many countries, expectations of further moderation and a generally lower cost of capital continue to create a supportive environment for dealmaking.
Trends Supporting M&A Activity
Several influences are reinforcing M&A momentum. Although pricing in some commercial and specialty lines has started to ease, overall underwriting performance remains sound and continues to attract acquirers in targeted areas. Additionally, excess capital on insurer and investor balance sheets is being channelled into strategic acquisitions as part of broader capital optimisation strategies.
Rather than chasing scale alone, strategic insurance buyers are targeting assets that offer diversification – whether through distribution, underwriting capabilities or geographic reach. M&A is also being used to accelerate strategic pivots, particularly in areas such as climate resilience, cyber, small and medium-sized enterprises and data-driven underwriting.
Private equity is once again becoming a significant force in the insurance M&A landscape. Financial sponsors are increasingly active in backing brokers, managing general agents (MGAs) and specialist carriers that combine recurring revenue with operational scalability. With improved financing conditions, buy-and-build models are gaining renewed traction, underpinned by a strong focus on risk-adjusted returns.
What We Expect
We anticipate M&A activity will continue to build through the remainder of 2025, particularly at Lloyd’s, attracting international investments.
Global P&C insurance and reinsurance markets enjoy supportive market fundamentals, which are encouraging selective but consistent return-to-deal execution, with activity spanning carriers, reinsurers, MGAs, brokers and tech-enabled platforms. Asconfidence strengthens, strategic buyers are turning towards transactions that enhance growth potential, improve resilience and align with long-term portfolio goals.
Distribution remains a key theme. Broker consolidation is accelerating, driven by the pursuit of regional scale, operational efficiency and access to high-margin specialty lines. Wholesale brokers and MGAs continue to attract buyers due to their underwriting focus, cost efficiency and alignment with carrier appetite. Meanwhile, insurtech players with embedded capabilities, automation or data insights are increasingly viewed as strategic enablers, not just disruptors.
Cross-border interest is increasing, particularly from Asia-based acquirers. Japanese insurers, for example, are redirecting capital from legacy domestic positions into overseas platforms that offer greater diversification and earnings stability. Similarly, a number of U.S. insurers have been actively looking at opportunities in the Lloyd’s market.
Simultaneously, structural shifts – including climate risk, cyber threats and artificial intelligence – are reshaping acquisition priorities. Buyers are placing higher value on innovation, adaptability and capabilities that address emerging risk trends.
Spotlight on Lloyd's
Lloyd’s remains a standout opportunity for both strategic and sponsor-led M&A. Atrium, Apollo and Inigo have all recently announced agreed sales (CRC, Skyward Specialty and Radian being the respective buyers), but there are still other private equity-backed syndicate businesses approaching exit timelines and expected to come to market.
These are highly attractive franchises offering global licensing, specialty underwriting expertise and a unique infrastructure that continues to differentiate Lloyd’s in a competitive market. Buyer appetite for these assets is strong.
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.