Mergers and acquisitions in insurance: caution prevails in 2024

After several years of intense activity, mergers and acquisitions (M&A) in the insurance market ⁽¹⁾, which peaked at 449 transactions in 2022, have been declining sharply since then.

The years 2023, 2024, and the first half of 2025 are following this trend, with 204 transactions reported as of 31 December 2024, the lowest figure in the last 15 years.

This decline in transactions reflects a change in attitude among market players. The latter are now more focused on financial stability and risk management than on developing revenue through external growth.

⁽¹⁾ The insurance market includes insurance, reinsurance, and brokerage companies.

Mergers and acquisitions in 2024: insurance market conditions

In an uncertain economic and geopolitical environment, caution is required. Expansion strategies are being redefined, priorities are being revised, and transactions are becoming more selective.

Some insurers are now favoring more flexible models, such as management intermediaries or MGAs (2), in order to penetrate new markets or access specialized expertise. It is noteworthy that this overall downward trend can be observed at different levels depending on the region, revealing contrasting dynamics between mature and emerging markets.

⁽²⁾ Insurance intermediaries or Managing General Agents (MGAs) are intermediaries in the insurance sector who act as a bridge between insurance companies and agents or brokers.

Number of M&A transactions in insurance: 2010 - 2024

With 204 transactions recorded in 2024, the number of mergers and acquisitions has fallen sharply compared to previous years.

M&A depend on several factors, as highlighted in a study conducted in March 2025 by Clyde & Co.

Regulations

Regulation can act as either a brake or a catalyst. In several emerging markets, regulations encourage the consolidation of insurance companies. This is the case in Saudi Arabia, the United Arab Emirates, Egypt, Nigeria, and Oman, where new minimum capital requirements are imposed by the regulator.

In other markets, such as those in Asia-Pacific, complex laws and restrictions on foreign ownership are slowing down mergers between local and foreign companies.

Political stability

Uncertainty surrounding political conflicts slows down decision-making. Decision-makers sometimes prefer to be on the safe side and wait for tensions to ease before proceeding with potential mergers.

Global inflation

In insurance, as in other sectors, the persistence of a global inflationary environment is weighing on M&A activity.

Rising financing costs, higher interest rates, uncertainty over valuations, and increased operating expenses and claims costs are all holding back transactions.

Despite this unfavorable environment, some well-capitalized regional players remain alert to targeted external growth opportunities.

Technological resilience

Traditionally an important factor, technological resilience is now becoming a strategic issue. Faced with the growing threat of cyber risks, a fragile IT infrastructure within the target company can not only reduce its valuation but also compromise the very success of a transaction.

In an uncertain political and economic climate, many players in the insurance market are reassessing their growth strategies and turning to MGAs. This alternative model offers a flexible approach to accessing new markets and benefiting from specialized expertise without resorting to a traditional acquisition.

Insurance : number of M&A transactions by region (2015 – 2024) ⁽¹⁾

The downward trend that began in 2023 continued into 2024, affecting all regions except the Middle East and Africa.

In one year, from 2023 to 2024, the number of mergers and acquisitions fell by 43% in the Americas, 47% in the United Kingdom/Europe, and 25% in Asia-Pacific.

Source: Clyde&Co, Insurance Growth Report 2025

Americas

Historically the leader in terms of the number of mergers and acquisitions, with a market share of 45%, the Americas region witnessed a significant slowdown in this kind of transaction in 2024.

The United States remains the main driver of regional activity, even though the total number of transactions fell from 122 in 2023 to only 69 in 2024.

Europe

Europe accounted for 27% of M&A transactions in 2024, with broker consolidation standing as the main driver of activity. However, the number of mergers was slowed by:

• The high cost of adapting heterogeneous technology systems to European regulatory requirements, particularly those imposed by the Digital Operational Resilience Act (DORA).
• The increased mobility of young talent, which, combined with retirements, is leading to a shortage of skilled labor, putting further pressure on wage costs.

Asia-Pacific

The Asia-Pacific region accounted for 19% of global M&A activity in 2024. The insurance industry remains unattractive for consolidation activities, with transaction volume declining by 25% between 2023 and 2024.

The maturity of the region's main markets, particularly those of Hong Kong and China, explains this lack of infatuation with M&As. In addition, the level of market saturation in the region is an obstacle to new entrants. As a result, players already present in the market are focusing on internal development rather than external growth.

⁽¹⁾ These involve mergers of insurance, reinsurance, and brokerage companies.

Middle East and Africa

The insurance market in the Middle East and Africa reported 17 M&A transactions in 2024, two more than in 2023. The region accounted for 8% of M&A activity in 2024.

In the Middle East, Kuwait posted the largest transaction, namely the acquisition of Gulf Insurance Group by Fairfax International Corp for 126.8 million USD.

South Africa, meanwhile, emerged as the most dynamic African market in terms of mergers and acquisitions. It was in this country that the two major transactions took place.

The first involved Sanlam, acquiring a 60% stake in MultiChoice Group for 639 million USD. The second involved Sanlam Life Insurance, buying Budvest Proprietary's stake in Assupol Holdings for 375 million USD.