Global mergers and acquisitions (M&A) activity increased in the third quarter of 2025, with deal value and performance metrics signalling a strong year for the sector, according to new research from WTW.
The firm’s Quarterly Deal Performance Monitor (QDPM), conducted with the M&A Research Centre at Bayes Business School, found that companies engaged in M&A outperformed those that were not by +11 percentage points for deals over US$100 million completed in the last three months. This marks the highest quarterly performance since early 2021.
The total value of completed deals reached US$371 billion in the third quarter, surpassing the combined value of the first two quarters of 2025, which stood at US$334 billion. This represents the best third-quarter deal value since 2015, driven by an increase in larger transactions and a significant uptick in North American activity. North American deals accounted for US$246 billion, up from US$119 billion in the same period in 2024.
Eight transactions valued at more than US$10 billion closed in the third quarter, the highest number since late 2018. The number of large deals over US$1 billion rose to 52, compared to 43 in the third quarter of 2024. In total, 191 deals valued above US$100 million were completed globally, up from 169 in the same quarter last year.
Jana Mercereau (pictured above), head of Europe M&A Consulting at WTW, said, “After a turbulent start to the year, defined by aggressive tariff policies and geopolitical tensions, dealmakers have learned to normalise and move through uncertainty.”
Mercereau said that a shift in risk perception, along with pent-up demand, high stock market valuations, and steady interest rates, contributed to the surge in activity and optimism for the remainder of 2025.
While the broader M&A market showed strong momentum, the insurance sector experienced a notable slowdown in deal activity in early 2025. M&A volume involving global insurance carriers declined sharply in the first half of the year, reaching the lowest point since the 2008 financial crisis.
Only 95 deals were completed during the six-month period, down from 106 in the same period in 2024 and well below the 10-year H1 average of 192. This downturn reflected a cautious stance among carriers, who faced persistent geopolitical instability, inflationary pressures, and broader macroeconomic challenges. High valuations further discouraged large-scale moves, and interest from private equity bidders also declined.
As a result, most insurance carriers shifted their focus to domestic consolidation and smaller bolt-on acquisitions, as well as share repurchase programs and internal capital deployment.
Despite the slowdown in carrier-led M&A, investment activity in managing general agents (MGAs) remained comparatively resilient, with capital continuing to flow into MGA platforms across North America, Europe, and parts of the Middle East.
North American dealmakers posted a performance of +9.8 percentage points above their regional index, closing 92 deals in the third quarter. This follows ten consecutive quarters of negative results for the region.
Asia-Pacific acquirers outperformed their regional index by +17.8 percentage points, completing 46 deals in the third quarter, up from 18 a year earlier. European buyers also exceeded their regional index by +11.6 percentage points, with 47 deals completed, compared to 42 in the same period last year. The UK’s performance mirrored the broader European trend.
Most industries saw positive results in the third quarter, with the exception of Consumer Staples, which recorded -18.2 percentage points, Energy and Power at -2.7 percentage points, and Healthcare at -3.5 percentage points.
For the first nine months of 2025, M&A transactions delivered a performance of +4.1 percentage points, putting the year on pace to be the strongest since the post-pandemic boom in dealmaking four years ago.
Mercereau noted that the recent increase in M&A activity reflects a recalibration in the market, supported by lower financing costs and improved confidence in growth prospects. She also pointed out that tariff volatility, geopolitical issues, and regulatory challenges remain factors for the months ahead.
“With more companies going for scale, integration planning that starts early in the due diligence phase may prove to be the toughest test for buyers looking to lock in gains and drive growth,” Mercereau said.
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