Despite tentative signs of a pickup in January and a couple of sizeable early-year deals, UK insurance distribution mergers and acquisitions (M&A) slowed again in February, with only five new transactions announced for the month.
That takes the year-to-date total to 13 deals, ahead of the 10 announced at the same point last year. However, that figure is still tracking well below the pace needed to return to the 150-plus annual deal volumes seen in 2023 and 2024. According to recent MarshBerry data, 2025 was the slowest year for UK broker M&A since 2017, with just 99 deals completed.
Deal volume lags long‑term trend
MarshBerry revealed that more than half of the 13 deals to date involved a commercial lines target. There are still more than a dozen well-funded and determined consolidators principally focused on this segment. The majority of these are private equity-backed (PE), and with continuing soft market conditions they are likely to find organic growth an ongoing challenge.
From a seller’s point of view, conditions remain strong and there is no shortage of choice, even if overall deal volumes have cooled from recent peaks, the report said.
How the UK compares with other regions
The UK picture contrasts with the US, where insurance brokerage M&A remains significantly more active. MarshBerry figures showed 127 announced US broker deals in Q1 2025, up 11.4% on the same period a year earlier, and 395 transactions in the seven months to July 31, 2025. Separate data set from Optis Partners recorded 520 insurance agency M&A deals across the US and Canada in the first three quarters of 2025, indicating a still-elevated level of consolidation in North America even as growth moderates.
By contrast, global insurance carrier M&A has been subdued. Clyde & Co’s latest growth report found that overall insurance M&A fell to a 16‑year low in 2024, with Asia‑Pacific carrier deals down 25% year‑on‑year as firms shifted attention towards organic growth and data‑driven investment. Against that backdrop, the UK broker market’s slowdown in 2025 and muted start to 2026 appear more cyclical than structural, with PE capital and consolidator appetite still firmly in place.
Buyer mix remains broad
There were 11 different buyers involved in the 13 deals announced in 2026. Three of these were overseas firms, one is a quoted FTSE 100 insurer, three are privately held, and the remainder were either PE (directly) or PE‑backed consolidators.
In 2025, there were no fewer than 51 unique buyers of UK firms in the sector, of which 12 were overseas firms. While a large proportion of sector M&A involves a relatively concentrated group of serial acquirers (the top 10 most active buyers in 2025 accounted for 58% of all deals), there is still a broad range of firms active in sector M&A.
Many others remain on the sidelines, waiting for the right target or, in some cases, being frustrated in their ambitions by the high level of competition for established, profitable businesses.
Market watchers expect activity to remain patchy in the short term, with further rate and valuation uncertainty likely to weigh on larger transactions even as smaller bolt‑ons continue to get done. However, advisers point to the depth of PE dry powder, the number of active consolidator platforms and the continued need for scale and specialism in broking as factors that should support a recovery in volumes once pricing expectations stabilise.
For now, the data suggest a market in pause rather than retreat: deal numbers are running ahead of 2025 but well below the peaks of 2023 and 2024, while the mix of buyers remains diverse and new entrants are still appearing. If funding conditions ease and earnings visibility improves later in the year, many expect that pipeline of “parked” processes and frustrated bidders to translate into a busier second half for UK insurance distribution M&A.
