Global insurance M&A hits 16-year low, rebound expected in 2025: Clyde & Co

In 2024, global insurance carrier M&A dropped to a 16-year low, with high interest rates, geopolitical instability, and increased regulatory oversight reducing carriers’ appetite for deals, according to Clyde & Co’s annual Insurance Growth Report.

Only 204 transactions were completed in 2024, a sharp decline from 346 the previous year, marking the lowest total since the report’s inception in 2009.

While traditional dealmaking remained subdued in 2024, the global Managing General Agent (MGA) sector thrived as carriers in the US, Europe, and the Middle East increasingly deployed capital in this space.

Despite a weak year for dealmaking, 2025 is expected to see a rebound, led by the US, where resurgent investor confidence—driven by the government’s appetite for deregulation and a lower cost of capital—is predicted to fuel activity both domestically and abroad.

Foreign interest in the US Excess & Surplus market is expected to rise, while US carriers, supported by a strong dollar, are likely to seek underpriced assets in Europe and beyond.

As the global insurance sector faces both the opportunities and challenges posed by new technologies like AI, Clyde & Co predicts that 2025 will see an increase in dealmaking driven by technology considerations, including cyber resilience.

An increasingly divergent global regulatory landscape is expected to act as both a catalyst and a barrier to M&A activity in 2025, while the rise of MGAs will continue.

Regional consolidation, particularly in markets like the Middle East, is likely to persist, while a softening global rate environment will drive specialty deals.

Eva-Maria Barbosa, Partner, Clyde & Co said, “With many of the challenges that characterised 2024 persisting, dealmaking will be tough in 2025 as businesses grapple with a plethora of evolving risks. This is fuelling the growth of MGAs globally as they offer an appealing avenue to establishing footholds in uncertain markets and industries. While we can expect this trend to continue, traditional dealmaking could be rekindled too, particularly in the US where a deregulated economy is likely to prompt new activity around the world. The pipeline of deals already mooted in the first half of 2025 is very strong.”

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