European insurance mergers and acquisitions (M&A) activity reached a record high in 2024, with 694 announced deals, a more than 20% increase from 574 transactions in 2023, according to analysis by FTI Consulting.
The firm’s 2024 European Insurance M&A Barometer indicates that market conditions continue to support consolidation, particularly within the distribution sector, despite ongoing geopolitical and economic shifts.
FTI Consulting’s report highlights that private equity (PE) interest in asset-light insurance businesses continues to drive larger deal sizes and increased transactional funding. There were 437 PE-backed transactions across Europe in 2024, reflecting an approximately 20% increase from the previous year.
The competitive environment, combined with a limited supply of attractive assets, has intensified competition, leading to rising asset prices, particularly in the insurance distribution sector.
The number of non-PE-backed transactions also increased, with 257 deals recorded in 2024, up from 208 in 2023.
A separate report from Clyde & Co also pointed to higher interest rates and regulatory concerns as major contributors to the slowdown in insurer appetite for acquisitions.
That said, while traditional M&A activity declined, investment in managing general agents (MGAs) increased, with insurers in the US, Europe, and the Middle East allocating capital to this segment.
FTI Consulting’s head of the EMEA insurance M&A practice, André Frazão (pictured above), said that the market remains active and is likely to see further consolidation in 2025, particularly within the broking sector.
FTI Consulting noted that broker acquisitions remained a significant trend in 2024, driven by organic growth and financial arbitrage strategies. Broking and service providers accounted for 627 transactions, representing 90% of all European insurance M&A activity during the year.
The UK and Ireland continued to lead M&A activity, with 284 transactions, up from 232 in 2023. However, as these markets mature and high-quality targets become scarcer, investor interest has shifted towards continental Europe, where new consolidation platforms and buy-and-build strategies are emerging.
That said, MarshBerry reported that, two months into 2025, merger and acquisition activity within the UK insurance distribution sector continued at a slow pace, following a similarly subdued start in January.
Iberia, on the other hand, recorded 117 deals, surpassing the DACH region (Germany, Austria, and Switzerland) to become the second most active market for insurance M&A.
The report highlights several trends shaping the European insurance sector, including the growing role of MGAs. More underwriters are establishing or joining MGAs with PE support, and insurers are forming partnerships with specialty MGAs, driving valuations that rival or exceed those of traditional brokers.
Continuation vehicles (CVs), originally developed in the United States, have also gained traction in Europe. These refinancing structures allow PE firms to deploy additional capital while providing liquidity to existing investors.
The potential return of carrier M&A is another development to watch, as market softening makes profitable, organic growth more challenging. Underwriting performance may come under pressure, prompting further consolidation and increased M&A activity within the carrier segment.
Additionally, large broker platforms are adopting a "consolidator-of-consolidators" strategy to expand their global presence.
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