Berenberg expects increase in M&A activity among reinsurers

German investment bank Berenberg expects a rise in mergers and acquisitions (M&A) activity within the reinsurance sector, driven by decelerating growth and intensifying market competition.

Reinsurers with robust balance sheets and ample financial resources are well-positioned to capitalize on acquisition opportunities, either to acquire competitors or diversify their operations.

Berenberg notes that nearly half of reinsurers exceeded net profit expectations by more than 10% in the first half of 2025. Despite this strong performance, the sector saw an average share price decline of 2% over the same period, creating conditions favorable for increased consolidation.