European Insurance M&A Activity Rises 14% in 2025: FTI Consulting

Key Takeaways

• 2025 deals hit 789, up 14% YoY.
• UK/Ireland transactions fell 23%, still leading with 219 deals.
• DACH region rose 35%, second most active market.
• Valuations reached up to 18x EBITDA for premium platforms.
• PE-backed buyers focus on specialty brokers, MGAs.

Summary

European insurance M&A activity climbed 14% in 2025, reaching 789 announced transactions across brokers, MGAs, service providers and carriers. The United Kingdom and Ireland saw a 23% year‑on‑year decline, yet remained the region with the most deals at 219. Continental markets, led by the DACH region with a 35% increase, drove the surge, pushing valuations to as high as 18 times EBITDA. Private‑equity‑backed platforms and strategic buyers are shifting from broad roll‑ups to targeted specialty broker and MGA acquisitions.

Pulse Analysis

The European insurance M&A market is entering a phase of accelerated consolidation, buoyed by strong capital availability and a quest for scale in a low‑interest‑rate environment. While overall deal volume rose, the quality of transactions is shifting toward high‑margin specialty lines, where insurers can capture pricing power and cross‑sell opportunities. This trend reflects broader industry pressures, including regulatory scrutiny and the need for digital transformation, prompting firms to seek inorganic growth that delivers immediate capabilities rather than organic expansion alone.

Geographically, the United Kingdom and Ireland experienced a notable slowdown, with a 23% drop in announced deals. The decline is attributed to a maturing market, fewer headline‑size transactions, and heightened uncertainty around Brexit‑related regulatory changes. In contrast, the DACH region surged, posting a 35% increase in activity and becoming the second‑largest hub for insurance deals. Robust German, Austrian, and Swiss insurers are leveraging strong balance sheets to acquire niche brokers and managing general agents, driving valuation multiples up to 18 times EBITDA—a clear indication of intense competition for premium platforms.

Private equity’s footprint continues to expand, now accounting for the majority of acquisition activity. Funds are moving away from traditional roll‑up strategies, instead targeting specialty brokers and MGAs that offer scalable, portfolio‑wide benefits and geographic diversification. As many PE funds approach the end of their investment cycles, 2026 is expected to see a wave of exits, creating opportunities for well‑capitalised strategic buyers. The next wave of M&A will likely be defined by cross‑border deals, focused on integrating niche expertise and achieving operational efficiencies in an increasingly competitive European insurance landscape.