In its latest market update, investment banking and consultancy firm MarshBerry has reported a slow start to 2025 in terms of merger and acquisition activity in the insurance sector, following the record transaction levels seen in 2024.

In the year to date, MarshBerry said there had been nine UK transactions announced involving an insurance distribution business. This compares to the 23 deals announced in the same period last year. In February, there were five deals. This was half the average monthly total of 9.6 seen since 2016.

John Nisbet (pictured), managing director at MarshBerry, stated: “It is much too early to conclude that sector M&A activity is slowing down. The key drivers that have driven the high levels of sector consolidation that has characterised the past 10+ years have not gone away. In recent conversations with several active buyers, they have been keen to point out that their pipelines are busy and their appetite for acquisitions is undimmed.

“The next few months could well see a flurry of new deals announced. And of course, the number of deals alone is not the whole story when it comes to sector M&A. Deal sizes matter too, and February did see one substantial deal in the Lloyd’s broking sector, with Miller’s widely publicised acquisition of AHJ.”