UK M&A activity increases in 2024 despite shift in investor focus

Insurance M&A activity across the UK and Ireland rose in 2024 despite a shift in investor focus, new data from FTI Consulting has revealed.

Published today (19 March 2025), the data showed that 284 deals were done last year, up from 232 in 2023.

FTI Consulting also noted that broker acquisitions remain a “major trend, driven by organic growth and financial arbitrage strategies”.

However, while the UK and Ireland led the way for deal activity across Europe, FTI Consulting said “the maturity of these markets and a scarcity of high-quality targets have shifted investor focus to continental Europe”.

“[This is] where established consolidation platforms and new buy-and-build strategies are emerging,” the firm said.

“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.”

More consolidation? 

Meanwhile, despite macroeconomic challenges, a record 694 deals were announced in 2024 across Europe, up from 574 in 2023.

FTI Consulting also revealed that private equity (PE) interest in asset-light insurance businesses continues to drive larger deal sizes and increased transactional funding.

For example, there were 437 PE-backed transactions across Europe in 2024 – a rise of approximately 20% on the previous year.

André Frazão, head of the EMEA insurance M&A practice at FTI Consulting, said: “The market remains frothy, and while I can’t predict the future, it is ripe for more consolidation in 2025, fuelled 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.”