Deal volume is down but the total value of the deals that were ma
de is up, according an analysis by PwC of mergers and acquisitions in the insurance sector.
The look at M&A activity showed total deal value within the insuranc
e sector of $30 billion from 209 deals for the six-month period ending M
ay 15. This compares to a value of $20 billion on 297 deals for the prior six-month period ending November 15, 2024.
“The insurance sector continues to be attractive to investors and ha
s remained resilient through challenging market conditions,” said Mark Freidman, insurance deals leader at PWC.
The professional services network added that the insurance indus
try remains appealing but “uncertainty over the economy and government policy has recently reduced sector deal volume.”
PwC said insurance brokerage activity remains strong due to or
ganic growth, primarily from insurance rate increases. Most recently, Brown & Brown announced it
was acquiring the parent company of Risk Strategies and One
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80 Intermediaries for about $9.8 billion. The deal was struck after the deadline for PwC’s analysis.
Within the six-month timeframe, Arthur J. Gallagher & Co. a
nnounced its acquisition of AssuredPartners for $13.5 billion. Also, The
Doctors Company acquired ProAssurance Corp., and Munich Re said it bought Next Insurance.
PwC also noted what it called a “backlog” of insurance IPOs (initial public offerings).
“We’ve seen some instances of companies preparing a dual track exit strategy between a public offering a
nd private M&A, but due to the scale of some distribution consolidators, complete exits are proving challenging,” PwC reports.
Still, action is picking up. Aspen in May raised $397.5 million. Florida’s American Integrity filed for an IPO in April. In June, insurtech Slide and New York-based E&S insurer Ategrity announced IPOs.