Consultancy MarshBerry has reported 12 merger and acquisition deals in the insurance sector during August and believes there will be an uptick in activity in the coming weeks due to the widely predicted changes to capital gains tax that are expected to be announced at the end of October.

The 12 deals in August were more than the 8 reported in the same month last year, although deals for the year to date (97) remain slightly behind those recorded in 2023 (102).

In his report for the month, John Nisbett, managing director at MarshBerry stated: “An interesting highlight in 2024 has been the number of larger deals that have involved insurance carriers divesting distribution businesses.

“Allianz and Liberty Mutual have both recently sold sizeable UK broking businesses, and in August it was announced that Zurich has agreed to sell its Navigators & General marine MGA (managing general agent) business to Geo Underwriting (part of Ardonagh).

“There are far fewer distribution businesses sitting within UK carriers than there used to be. But such business units, which are often non-core and unloved or overlooked by their owners, remain a continuing source of acquisitions for broking consolidators who generally – and with some justification – believe they can manage them more effectively than a carrier.”