The fourth quarter has opened with steady activity in the UK insurance distribution M&A market, as October recorded 10 new transactions, marking just the fourth month in 2025 to reach double digits, according to MarshBerry data.
While the final quarter is typically the busiest period for US transactions due to tax considerations, the UK market generally lacks strong seasonal patterns. Still, with 85 announced deals so far this year, 2025's total is set to fall well below the more than 150 deals completed in both 2023 and 2024.
October's total of 10 deals was marginally above the long-term monthly average of 9.6. With 50 deals completed in H1 and 35 in the first four months of H2, 2025 has been a markedly slower year for insurance distribution M&A. At this point last year, 126 deals had been announced, about one-third higher than this year's pace.
MarshBerry showed that while demand for acquisitions remains healthy, deal sizes have trended smaller. Prominent buyers such as Ardonagh and Brown & Brown have reduced their acquisition activity, while newer consolidators have filled some of the gap. In 2025, 47 separate buyers have completed UK deals, with 10 of them making multiple acquisitions.
However, the focus on smaller targets has shifted market dynamics. More than two-thirds of 2025 deals involved targets valued below £5 million, higher than the 10-year average of 59%. Adjusted for inflation and rising sector valuations, this trend underscores a move toward smaller-scale consolidation, as well-funded private equity (PE)–backed buyers chase limited mid-sized opportunities.
JMG's expansion typifies this shift, according to MarshBerry. Despite leading in deal count, its acquisitions added just over 100 employees, which was fewer than Brown & Brown (Europe) and NFP, which recorded fewer but larger acquisitions. Without major "mega-deals" like those of prior years, consolidation by premium volume and revenue has effectively slowed, even as transaction counts remain steady.
October saw Beech Tree Private Equity exit its investment in MGA Avid Insurance through a sale to Bishop Street Underwriters, marking the fifth PE exit this year. Despite some mixed returns in the MGA space, PE firms remain active, with four new investments in 2025 and MGAs representing 17% of all deals, up from 12% last year.
Looking ahead, the UK insurance M&A market is expected to remain active but constrained by limited target availability and ongoing macroeconomic pressures.
Consolidators are likely to continue focusing on smaller brokers and niche MGAs as larger opportunities dwindle. Private equity remains a central source of capital, though investors may become more selective given tighter credit conditions and slower growth across the sector.
Unless larger transactions return to the market, the remainder of 2025 and early 2026 may see continued high deal counts but modest consolidation by scale.
