
Clyde & Co’s latest report: Will 2025 be different for insurance M&A?
Clyde & Co has released its latest global insurance growth report – a must-read for anyone keeping an eye on M&A activity in the insurance space. The report unpacks the challenges that led to a significant slowdown in carrier M&A during 2024 and looks ahead to what the landscape might hold in 2025 and beyond.
The big takeaway? 2024 marked a new low for M&A in the insurance carrier market. A combination of geopolitical uncertainty, persistently high interest rates and the rising cost of innovation prompted even historically deal-hungry players to take a more cautious approach. Many boards found themselves focusing on internal priorities, navigating complex regulatory requirements (like DORA) and investing heavily in technology – often at the expense of M&A.
Still, there are signs of opportunity on the horizon. While we may not see a return to pre-pandemic deal volumes, growth is still on the cards, albeit through more varied and strategic levers. Think targeted partnerships, local consolidation and select transformational acquisitions by global players with capital to deploy.