The UK insurance distribution market recorded only 41 merger and acquisition (M&A) transactions in the first half of 2026. MarshBerry said the total was the lowest first-half figure since 2017. June produced just four deals – the quietest month of the year and one fewer than June 2025.
The data put the sector on course for a second consecutive annual total below 100 transactions. Supply and demand-side factors have suppressed activity for approximately 18 months, according to MarshBerry. June has historically been the sector's quietest month, with a ten-year average of just 7.5 deals against the 9.4 full-year monthly mean.
The prospect of a capital gains tax (CGT) increase under an incoming Burnham-led government may prompt a wave of broker sales in H2. Andy Burnham and several allies have previously expressed support for aligning CGT rates with income tax rates. The main CGT rate rose from 20% to 24% in October 2024, but remains substantially below the higher income tax rate of 40%.
CGT speculation has previously acted as a catalyst for sector M&A, with deal volumes rising ahead of possible announcement dates. The Autumn Budget could arrive within five months – limited time for sellers to execute a transaction from a standing start. If a further CGT increase draws vendors into the market, September and October could see a material pick-up in deal activity.
For owners of privately held brokerages and MGAs, the timing is acute. Alignment with the additional income tax rate of 45% would represent a material reduction in net sale proceeds, and the window for action is narrowing.
Two of June's four transactions involved private equity (PE) exits, a disproportionate share given the month's low overall volume. Just five PE exits were recorded across all of 2025, a figure MarshBerry expects to be exceeded this year. The global all-sector average PE holding period has reached approximately 6.5 years, in line with the average for direct UK insurance distribution investments.
On a year-to-date basis, PE capital accounted for 41% of all sector deals, below the long-term average. The majority of this involvement has been indirect, with PE-backed broking groups such as JMG Group and Clear driving bolt-on acquisitions. In a balanced year, the sector typically sees around half a dozen direct PE investments alongside a similar number of exits.
Specialty businesses accounted for more than a quarter of all UK insurance distribution deals in H1 2026 – the highest share on record. By comparison, specialty targets represented just 19% of US insurance distribution M&A in 2026, according to MarshBerry. The gap points to sustained buyer appetite for MGAs and Lloyd's brokers, alongside the rapid rate of new MGA formation.
Sector consolidation has reduced the number of commercial brokers over the past decade. The MGA segment has expanded rapidly in contrast, supported by low barriers to new firm formation and ready access to delegated authority capacity. Lloyd's brokers have drawn sustained interest from domestic and overseas buyers alike, with the specialty segment's deal share growing as a result.
June's four deals included two PE exits. ANV Group, the Blackstone-backed MGA platform spun out of US insurer AmTrust, acquired Assured Underwriting Group (AUG) from Mobeus Equity Partners. AUG trades as Travel & General and operates in the UK and several European markets, having been held by Mobeus since 2018.
Carbon Underwriting secured growth capital from US firm FTV Capital in a secondary PE transaction. The MGA, which first took PE backing from Apiary Capital in 2023, is expected to use the new capital to support its US expansion.
The Broker Investment Group (TBIG) completed two commercial broking deals in June. Needham Insurance Services, backed by TBIG, acquired Hinckley Insurance Services in Leicestershire. TBIG also raised its shareholding in Scott Blain Insurance Consultants, a £9m GWP broker in Barnet, to majority.
Whether the political calendar translates into a material H2 pick-up remains to be seen. MarshBerry's analysis suggests any acceleration is likely to concentrate in September and October, ahead of the Autumn Budget.
