A new report from FTI Consulting has revealed that European insurance mergers and acquisitions (M&A) remained robust in 2024, reaching a record 694 announced deals, a rise of over 20% from the 574 deals recorded in 2023.
As per the report, Broker acquisitions remain a major trend, driven by organic growth and financial arbitrage strategies.
In 2024, broking and service providers accounted for 627 transactions — 90% of all European insurance M&A deals during the year.
FTI Consulting additionally noted that while deal activity in the UK and Ireland surpassed other regions with 284 deals, the maturity of these markets and a scarcity of high-quality targets have shifted investor focus to continental Europe, where established consolidation platforms and new buy-and-build strategies are emerging.
“Consolidation was so strong in Iberia that it overtook the DACH region (Germany, Austria, Switzerland), making it the second most active market, with 117 deals announced,” the firm added.
Meanwhile, private equity (PE) interest in asset-light insurance businesses also reportedly continues to drive larger deal sizes and increased transactional funding.
FTI Consulting’s report found there were 437 PE-backed transactions across Europe in 2024, up 20% on 2023.
André Frazão, Head of the EMEA Insurance M&A practice at FTI Consulting, commented, “2024 was another record-breaking year for insurance M&A deals, which underscores the market’s resilience and opportunism.
“Despite some predictions of a slowdown, the UK and Ireland continue to lead deal activity in Europe, as they represent the largest insurance market in the region with the highest number of broker and MGA consolidation platforms; however, the continent is emerging as the new hotspot, driven by the fact that there is so much market fragmentation.”
Frazão added, “The market remains frothy, and while I can’t predict the future, it is ripe for more consolidation in 2025, fueled by private equity, particularly in the broking space, even amid tougher economic headwinds.
“The year has started with a strong pipeline ahead, and a number of M&A processes have already kicked off, suggesting that it will be another very busy year for the insurance sector in Europe.”
