Insurance

Insurance deals activity slowed in the first half of the year driven by uncertainty and concern about the overall state of the economy.

The insurance sector recorded a total deal value of $30 billion, representing 209 disclosed deals for the six-month period ending May 15, 2025. This compares to $20 billion and 297 deals for the prior six-month period ending November 15, 2024. While deal volume did decrease, the increase in announced deal value indicates sustained investor demand for the perceived stability of the overall insurance market.

Over the last six months, there have been six announced $1+ billion deals:

• In December 2024, Arthur J. Gallagher & Co. announced its acquisition of AssuredPartners for $13.5 billion.
• In December 2024, Nippon Life Insurance agreed to acquire the remaining shares of Resolution Life for $8.2 billion.
• In February 2025, Legal & General announced the $2.3 billion sale of its US insurance subsidiary to Meiji Yasuda Life Insurance Company.
• In March 2025, The Doctors Company entered into a definitive agreement to acquire ProAssurance Corporation for $1.3 billion.
• In March 2025, Munich Re disclosed its acquisition of Next Insurance.
• Lastly, in March 2025, Arthur J. Gallagher also announced its $1.2 billion acquisition of Woodruff Sawyer.

^{Note: The source used in the 2025 midyear outlook is S&P Global Market Intelligence.}

We’ve seen a few notable deal trends:

• Insurance brokerage activity remains strong, supported in part by increased organic growth resulting from rate increases. While property rate increases have abated somewhat recently, possible increases in 2025 into 2026 due to trade policy uncertainty and the sustained impacts of high-impact natural catastrophes could benefit insurance brokers’ top line revenue growth.
• The P&C sector has recently reported notable improvements in loss ratios and underwriting profitability, largely driven by higher premiums, reinsurance activities and enhanced underwriting. Despite ongoing uncertainty around policies that could affect claims costs (particularly within the property segment), interest from both financial and strategic buyers remains strong.
• In the life and annuity sector, concern about the overall health of the economy and interest rates has created some uncertainty and hesitancy. However, there’s continued interest from asset managers and foreign inbound investors to acquire US life and annuity portfolios. As yields stabilize, we expect to see significant deal activity in this space. Additionally, there is continued interest in US carriers from Asian markets, as evidenced by recent megadeals such as Nippon Life’s additional investment in Resolution Life and Meiji Yasuda’s acquisition of Legal & General.
• There is a significant backlog of insurance IPOs as many companies have waited for market conditions to improve. We’ve seen some instances of companies preparing a dual track exit strategy between a public offering and private M&A, but due to the scale of some distribution consolidators, complete exits are proving challenging. That said, Aspen Insurance went public on May 7, 2025, with a valuation of $2.76 billion ahead of its trading debut.

While overall insurance deal volumes have decreased as market participants await clearer signals on economic and trade policies, the potential for significant, market-shaping transactions (including IPOs) remains strong. We anticipate ongoing insurance deal activity and selective and strategic dealmaking in the months ahead, likely with several high-profile transactions.

The insurance industry remains an appealing sector to deploy capital but uncertainty over the economy and government policy has recently reduced sector deal volume.

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