Insurance M&A market hits $29.6 billion in 6M
The appetite for mergers and acquisitions in the insurance sector remains strong, but artificial intelligence is already changing how buyers evaluate target companies, costs and long-term margins, says a PwC report.
From the beginning of December 2025 to the end of May 2026, the volume of insurance deals disclosed amounted to about $29.6 billion in 191 transactions. In the previous six-month period ending November 30, 2025, 207 deals worth $31.8 billion were recorded.
However, the decline in the number and value of deals does not indicate a weakening of the market, analysts believe.
PwC notes that interest in deals has not disappeared. Improving combined ratios have attracted buyers’ attention to specialty insurers, MGAs, fronting companies, as well as businesses in the excess and surplus segment.
Private equity remains active, but is more selective. Some of the largest transactions in the past six months have been with financial sponsors, strategic buyers and insurance groups seeking scale in specialty risk, brokerage or retirement assets.
In December 2025, Howard Hughes Holdings acquired Bermuda reinsurer Vantage Group Holdings for $2.1 billion from Carlyle and Hellman & Friedman.
In the same month, Willis Towers Watson agreed to buy technology insurance broker Newfront Insurance Holdings for $1.45 billion, adding an insurtech-native platform to one of the largest global brokers.
The Baldwin Insurance Group also closed a deal in December 2025 to acquire Cobbs Allen Capital Holdings for $1.41 billion, strengthening its position in retail brokerage and specialty segments.
In February 2026, Enstar Group bought workers’ compensation broker Accident Fund Holdings from Blue Cross Blue Shield of Michigan for $1.59 billion.
The largest announced transaction was in March 2026, when Corebridge Financial and Equitable Holdings agreed to merge in a deal valued at about $22 billion, bringing together two large retirement products, life insurance and wealth management platforms with approximately $1.5 trillion in assets.
Today, investors in public and private markets are assessing whether new entrants can use AI to provide brokerage services with lower cost structures, or whether incumbent brokers can use it to reduce costs and protect margins.
PwC expects this issue to impact company valuations, capital allocation and deal strategy.
Insurers and reinsurers are also looking at AI as an investment argument. Many are pouring more capital into underwriting, claims management, and workflow automation.
If such projects improve risk selection, expense ratios, or operational speed, it will be reflected in valuations and give buyers another argument for new transactions.
Insurance broker valuations have already begun to soften as rate increases slow across many lines of insurance. AI is adding pressure as it raises questions about the future economics of brokerage.
This points to slower deal volumes in distribution, especially where sellers are still anticipating the valuations typical of a stronger rate cycle.
Insurance M&A is likely to exceed standard targets in P&C brokerage, according to Beinsure.
PwC expects activity in related categories close to insurance, including home and property warranties, vehicle finance and insurance, credit and payment protection, and additional distribution platforms.
The next phase of deals will depend on overall market confidence and whether buyers see future returns. Specialized underwriting, embedded distribution, settlement automation, and AI-powered operating models are becoming increasingly difficult to ignore in company valuations.