Broker mergers and acquisitions conclude first half of year with a subdued finish

Mergers and acquisitions in the UK insurance distribution business saw a decline of 35% in the first half of the year compared to the previous year, according to a report by specialist firm MarshBerry. The slowdown in domestic consolidation was noted by John Nisbet, the managing director of MarshBerry’s UK office. Only five deals were completed in June, marking the end of the half-year with minimal activity.

MarshBerry’s analysis for 2025 revealed that only April saw double digits in deal announcements, a stark contrast to the average of 11.1 deals per month from 2020 to 2024. The previous year set a record with 152 broker deals in the UK. The significant drop in activity signals a change in the market landscape, possibly influenced by various factors impacting the industry and economy.

The decline in mergers and acquisitions in the insurance sector could be due to a combination of internal and external factors. Economic uncertainties, regulatory changes, market volatility, and shifting consumer needs may have contributed to the reduced activity. Companies might be taking a more cautious approach, evaluating the potential risks and benefits of pursuing deals in the current environment. The pandemic and its aftermath could be another factor affecting the pace of consolidation in the industry.

As the market adjusts to these challenges, insurance businesses are likely reevaluating their strategies and priorities. Companies might be focusing on internal operations, optimizing existing resources, and streamlining processes to enhance efficiency and profitability. This shift towards internal development could be a response to the uncertain external environment and a desire to strengthen core capabilities before considering external growth opportunities.

Despite the slowdown in mergers and acquisitions, industry experts remain optimistic about the future. The insurance sector has shown resilience in the face of challenges, adapting to changing circumstances and evolving customer demands. Companies that prioritize innovation, customer-centricity, and operational excellence are well-positioned to navigate the current landscape and emerge stronger in the long run.

The second half of the year will likely bring new opportunities and challenges for the insurance industry. Companies that can adapt quickly, leverage technology effectively, and proactively address market dynamics are poised to succeed in the post-pandemic world. The evolving landscape of financial services and insurance distribution will continue to present opportunities for growth, innovation, and strategic partnerships. Navigating these changes requires a proactive and strategic approach, with a focus on long-term sustainability and value creation.