PwC: Insurance Megadeals Drive M&A Value Heading into 2026

According to PwC's US Deals 2026 Outlook: Insurance, megadeals remained the primary driver of insurance mergers and acquisitions (M&A) value in the second half of 2025. The insurance sector reported $31.8 billion in announced deals across 207 transactions from June 1 through November 30, 2025, compared with $30 billion from 209 deals in the prior 6-month period, reflecting consistent deal flow and sustained buyer demand, according to PwC.

PwC reported that 7 insurance transactions valued at more than $1 billion were announced during the 6-month period, accounting for 93 percent of total deal value while representing 3 percent of total deal volume. The concentration of deal value among a small number of large transactions underscores the continued importance of megadeals within the insurance M&A market, per PwC.

Megadeals cited by PwC included Brown & Brown's acquisition of Accession Risk Management Group, Endurance Specialty Insurance's agreement to acquire Aspen Insurance Holdings, Radian's acquisition of Inigo, DB Insurance's agreement to acquire The Fortegra Group, AIG and Onex Corporation's joint acquisition of Convex Group Limited, White Mountains' sale of a majority stake in Bamboo, and Acquarian's acquisition of Brighthouse Financial.

PwC said insurance distribution M&A activity remained robust, with corporate buyers continuing to lead deal activity. The report noted that brokers have relied on inorganic growth strategies to offset pressure on premium rates and attract talent, while larger brokerage platforms continue to account for a significant share of transaction volume.

Private equity investors remain active participants in insurance M&A despite recent declines in transaction volume, PwC reported. The report indicated that expectations of continued interest rate policy shifts into 2026 are supporting renewed private equity interest in insurance transactions, driven by recurring revenue models and opportunities to scale through consolidation.

PwC also reported ongoing consolidation in life and annuity platforms, as investors seek long-duration assets and international expansion opportunities. Recent cross-border transactions highlighted in the report illustrate continued global interest in US insurance assets, per PwC.

Underwriters are increasingly evaluating divestitures of fee-based businesses to unlock embedded value and optimize capital, PwC said. The report cited transactions involving AmTrust and SiriusPoint as examples of companies pursuing this strategy while maintaining underwriting and capacity relationships.

Looking ahead, PwC expects insurers to continue focusing on capital optimization and portfolio reshaping through M&A transactions over the next 6 months. Property and casualty M&A activity is expected to pick up as insurers report improved loss ratios and underwriting profitability, while premium rate pressure may contribute to additional deal activity, PwC said.

PwC also anticipates that insurance distribution M&A will continue to be influenced by interest rate conditions and competition for growth. While corporate acquirers have led recent activity, private equity investors are expected to pursue opportunities more aggressively as financing conditions improve, according to PwC.

In its outlook for 2026, PwC stated that insurance companies seeking to generate top-line growth, optimize capital, and reshape portfolios remain motivated sellers. As a result, PwC expects insurance deal activity in early 2026 to remain active and broadly in line with 2025 levels despite broader economic uncertainty.