PwC Reports: 2025 Sees Dominance of ‘Megadeals’ in the Insurance Sector

In the dynamic landscape of the insurance industry, “megadeals” are taking center stage in mergers and acquisitions. The trend has shown remarkable consistency throughout 2025, with expectations that the drive for growth will fuel even more deals in 2026.

According to a recent report from PwC, a staggering 93% of deal value in the latter half of 2025 was attributed to what they classify as “megadeals.”

During the period from June 1 to November 30, 2025, the insurance sector recorded 207 transactions, amounting to an impressive $31.8 billion in deal value. This follows closely behind the previous six months, which saw 209 disclosed deals worth $30 billion, as reported in PwC’s 2026 US Insurance Deals Outlook.

PwC highlighted seven significant megadeals, each exceeding $1 billion, that were announced in the last six months. These include:

• Brown & Brown’s acquisition of Accession Risk for $9.8 billion
• Sompo’s Endurance Specialty acquisition of Aspen Insurance for $3.5 billion
• Randian’s purchase of Indigo for $1.7 billion
• DB Insurance’s agreement to acquire Fortegra for $1.7 billion
• AIG’s joint acquisition of Convex Group with Onex Corp. for $7 billion
• CVC Capital Partners’ acquisition of a majority stake in White Mountains’ Bamboo for $1.8 billion
• An Acquarian-Brighthouse Financial deal in the life and annuity market valued at $4.1 billion

Looking ahead, PwC anticipates that carriers will continue to focus on capital optimization and portfolio reshaping through mergers and acquisitions. The property and casualty (P/C) M&A activity is on the rise, as many carriers report improved loss ratios and record underwriting profitability, making the sector increasingly attractive to investors and strategic buyers.

The insurance M&A landscape remains remarkably stable, with megadeals dominating the activity. Buyers are aggressively pursuing opportunities across distribution, property and casualty, and life and annuity sectors. PwC’s latest report, released this morning, delves into the reasons behind the sustained high deal value, the factors driving the recent $1 billion-plus transactions, and how carriers and distributors are leveraging creative financing as they approach 2026.

“In the coming months, expect interest rate developments and an industry-wide search for growth to strongly influence insurance deals activity,” said Mark Friedman, PwC U.S. insurance deal leader.

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In the dynamic landscape of the insurance industry, “megadeals” are taking center stage in mergers and acquisitions. The trend has shown remarkable consistency throughout 2025, with expectations that the drive for growth will fuel even more deals in 2026.

According to a recent report from PwC, a staggering 93% of deal value in the latter half of 2025 was attributed to what they classify as “megadeals.”

During the period from June 1 to November 30, 2025, the insurance sector recorded 207 transactions, amounting to an impressive $31.8 billion in deal value. This follows closely behind the previous six months, which saw 209 disclosed deals worth $30 billion, as reported in PwC’s 2026 US Insurance Deals Outlook.

PwC highlighted seven significant megadeals, each exceeding $1 billion, that were announced in the last six months. These include:

• Brown & Brown’s acquisition of Accession Risk for $9.8 billion
• Sompo’s Endurance Specialty acquisition of Aspen Insurance for $3.5 billion
• Randian’s purchase of Indigo for $1.7 billion
• DB Insurance’s agreement to acquire Fortegra for $1.7 billion
• AIG’s joint acquisition of Convex Group with Onex Corp. for $7 billion
• CVC Capital Partners’ acquisition of a majority stake in White Mountains’ Bamboo for $1.8 billion
• An Acquarian-Brighthouse Financial deal in the life and annuity market valued at $4.1 billion

Looking ahead, PwC anticipates that carriers will continue to focus on capital optimization and portfolio reshaping through mergers and acquisitions. The property and casualty (P/C) M&A activity is on the rise, as many carriers report improved loss ratios and record underwriting profitability, making the sector increasingly attractive to investors and strategic buyers.

The insurance M&A landscape remains remarkably stable, with megadeals dominating the activity. Buyers are aggressively pursuing opportunities across distribution, property and casualty, and life and annuity sectors. PwC’s latest report, released this morning, delves into the reasons behind the sustained high deal value, the factors driving the recent $1 billion-plus transactions, and how carriers and distributors are leveraging creative financing as they approach 2026.

“In the coming months, expect interest rate developments and an industry-wide search for growth to strongly influence insurance deals activity,” said Mark Friedman, PwC U.S. insurance deal leader.

Topics
Market