UK insurance distribution M&A almost ground to a halt in October, with just two deals announced, jointly the lowest monthly total for nearly ten years, according to MarshBerry.
The last time only two UK deals were announced in a month was in 2017. That leaves 62 announced transactions so far in 2026, 29% fewer than the 87 at the same point last year, which MarshBerry said was itself a slow year.
Many of the most active historical buyers have done no UK deals this year, including Howden, PIB Group, Ardonagh and DR&P. Others, including Gallagher, Brown & Brown, Specialist Risk Group and JMG Group, have done fewer than in recent years. Deal value is higher overall in 2026, mainly because of EQT’s investment in McGill and Partners. But MarshBerry said that on volume, 2026 will end at a multi-year low.
MarshBerry had expected a mini-spike in October, as owners rushed to complete before the 28 October Budget amid speculation that capital gains tax (CGT) would rise, possibly to match income tax. Similar fears drove spikes in March 2021 and October 2024, and IB flagged the possibility in August.
The rush never came. The headline CGT rate was left unchanged, and Treasury briefings in the run-up to the Budget had already removed the pressure to sign before October 28.
The Budget did cut the lifetime limit for Business Asset Disposal Relief from £1 million to £500,000 from April 2027. MarshBerry estimated this could cost a qualifying seller with shares worth £1 million or more up to £70,000 in extra tax. A new Founders’ Relief, offering a 10% CGT rate on qualifying disposals, also starts in April 2027, but MarshBerry said its criteria on ownership, growth and scale mean it is unlikely to apply to many broker or MGA owners.
MarshBerry said deals that had been aiming to complete in October may now take longer, and April 2027 may become a new target date for some sellers.
Both October deals involved Lloyd’s brokers bought by private equity-backed UK commercial broking consolidators. Clear Group acquired Commercial Risks (UK) and its MGA, Troon Underwriting, a deal on which MarshBerry advised the seller. Seventeen Group bought Dashwood Brewer & Phipps.
More than 30% of deals so far this year have involved a specialty target, the highest share on record. Clear, Seventeen and Partners& have all bought Lloyd’s brokers in 2026.
MarshBerry said specialty businesses tend to offer stronger growth and margins than commercial brokers. They also carry risks such as lower renewal retention, key person dependency and carrier concentration. Commercial broking consolidators are attracted by diversification, international reach and placement synergies.
MarshBerry said the specialty sector is closer to balance than commercial broking. The number of specialty firms with ten or more staff has crept up, helped by MGA start-ups and teams spinning out of larger groups. In commercial broking, consolidators have taken out firms faster than new ones form, because winning business from a standing start is hard when renewal retention is high.
MarshBerry said the shift towards specialty looks like a long-term change rather than a blip.
For broker owners weighing a sale, the pressure to complete before the Budget has gone, but the April 2027 cut to Business Asset Disposal Relief creates a new, smaller deadline. Owners planning to sell may want to take tax advice on whether completing before April is worthwhile.
For independent Lloyd’s brokers, the steady purchases by commercial consolidators mean fewer standalone firms remain, which makes those that are left scarcer and potentially more valuable.
