Insurance mergers and acquisitions (M&A) hit historic lows in the first half of 2025, with only 95 deals completed globally, down from 106 in H1 2024 and well below the 10-year average of 192, driven by geopolitical tensions, macroeconomic instability, and uncertainty from U.S. policy under President Trump’s administration. Despite this, cautious optimism is emerging for a potential uptick in the second half of 2025, as dealmakers anticipate pent-up demand breaking through if the macro environment stabilizes. Industry analyst Peter Hodgins from Clyde & Co noted increased dealmaking conversations, suggesting more activity in Q3 and Q4.
Carriers have been cautious, favoring capital conservation, share buybacks, and smaller bolt-on acquisitions over large-scale deals due to high inflation, rising interest rates, and volatile markets. Notable transactions, like Sentry Insurance’s $1.7 billion acquisition of The General and Zurich’s $600 million purchase of AIG’s Global Personal Travel Insurance unit, show selective strategic moves, with growing interest in managing general agents (MGAs) for cost-effective market access. Looking to 2026, focus is expected to shift toward high-growth regions like Southeast Asia, the Middle East, and Africa, with continued emphasis on data-rich businesses and opportunistic deals in catastrophe-affected areas.