Insurance M&A deal value reached $29.6 billion from 191 disclosed transactions between December 2025 and May 2026, down from $31.8 billion across 207 deals in the prior six-month period, according to PwC. The firm said appetite hasn't waned, but artificial intelligence is beginning to influence deal strategies and valuations.
Steady deal appetite driven by improved ratios
Better industry combined ratios are attracting interest, particularly for specialty carriers, managing general agents, fronting carriers, and other excess and surplus lines business. Private equity remains active but more selective, PwC said, participating in several of the period's larger transactions.
Notable transactions from the period
- Howard Hughes Holdings acquired Bermuda-based reinsurer Vantage Group Holdings for $2.1 billion from Carlyle and Hellman & Friedman in December 2025.
- Willis Towers Watson agreed to acquire tech-enabled broker Newfront Insurance Holdings for $1.45 billion in December 2025, folding an insurtech-native platform into a top global broker.
- The Baldwin Insurance Group acquired Cobbs Allen Capital Holdings for $1.41 billion in December 2025, extending its retail brokerage and specialty footprint.
- Enstar Group acquired workers' compensation specialist Accident Fund Holdings from Blue Cross Blue Shield of Michigan for $1.59 billion in February 2026.
- Corebridge Financial and Equitable Holdings announced a merger in March 2026 valued at about $22 billion, combining two scaled retirement, life insurance, and wealth management platforms with roughly $1.5 trillion in assets.
AI reshapes valuations and strategy
PwC said public and private markets are evaluating whether AI will let new entrants capture share by delivering brokerage services at a structurally lower cost, or if incumbent brokers can use AI to improve efficiency and sustain margins. "The outcome is expected to influence valuations, capital allocation decisions, and M&A strategy," the firm said.
AI is also viewed as an opportunity for many carriers and reinsurers as they increase investments in underwriting, claims, and workflow - areas where AI for Insurance applications are gaining traction. This could improve valuations and fuel more M&A, PwC said.
Premium rate increases that drove growth in recent years have moderated, and with AI's impacts, distributor valuations are declining. PwC expects distribution deal volumes to moderate. "Deal activity is likely to broaden beyond traditional P&C brokerage," the firm said, pointing to continued M&A in adjacent categories like home and product warranty, vehicle finance and insurance, credit and payment protection, and other ancillary distribution platforms.
Why this matters for insurance professionals
AI is no longer a future consideration - it's directly shaping how deals are priced and which companies attract capital. Insurance professionals should track how competitors and potential acquirers are deploying AI in underwriting, claims, and distribution, because those investments will influence M&A targets, valuations, and the competitive landscape over the next deal cycle.
Your membership also unlocks:
