The UK insurance distribution mergers and acquisitions (M&A) market experienced a notable slowdown in May 2025, following a relatively active April, according to a MarshBerry report. Only seven new deals were announced during the month, marking a return to the subdued activity seen earlier in the year.
Year-to-Date Deal Volume Down 30%
By the end of May, a total of 42 deals had been announced in 2025, representing a 30% decline compared to the same period in 2024. April’s brief uptick in dealmaking was likely driven by the end of the tax year and changes to business asset disposal relief, but that momentum faded quickly in May. The current pace suggests that total deal volume for 2025 may fall short of the 150+ annual transactions seen in each of the past two years.
Small Deals Continue to Dominate
The market remains dominated by smaller acquisitions, with 69% of deals in 2025 involving targets valued below £5 million, up from the long-term average of 59% since 2016. Only 14 deals so far this year have involved businesses with 20 or more employees, reinforcing the trend of localized, niche buyouts.
Despite the overall decline, larger transactions are still taking place. May witnessed the fourth deal this year exceeding £100 million, and more sizable transactions are reportedly in progress.
Supply Constraints and Shifting Buyer Focus
MarshBerry attributes the slowdown primarily to supply constraints, rather than diminished buyer appetite. The number of private brokers available for acquisition continues to decline, with limited new broker formation and growth challenges for new entrants. By contrast, activity in the managing general agent (MGA) sector remains healthy.
While buyer demand persists, many historically active consolidators have shifted focus toward refinancing, integration of past acquisitions, or international expansion. Some buyers who were active in recent years have yet to complete any transactions in 2025, further contributing to reduced deal flow.
Private Equity Still Drives Big Ticket Deals
Private equity (PE) participation in deal volume has declined, accounting for just 40% of deals so far in 2025—its lowest annual share since 2016. However, in terms of deal value, private equity continues to dominate the upper tier. All of the largest deals this year have featured PE involvement.
Meanwhile, independent buyers played a significant role in May, responsible for over half of the month’s transactions. These were all sub-£5 million deals, highlighting strong activity in the lower mid-market by non-PE buyers, especially regional and community brokers.
Notable M&A Activity in May
The largest transaction in May was JMG Group’s investment from US private equity firm GTCR, which will co-invest alongside Synova, the firm’s existing backer. CEO Nick Houghton will remain in position, as the deal underscores continued private equity interest in strategic UK broking platforms despite broader refinancing pressures.
Other key deals included:
-
Optio Group’s acquisition of Custodian Management, an MGA focused on professional and management liability insurance.
-
Clear Group’s acquisition of Protect Underwriting, adding to its Shape Underwriting MGA platform.
-
Niche Box Group’s purchase of Next Generation Ins Group (Cycler), expanding into bicycle and e-bike insurance.
-
GOAT Insurance’s acquisition from Rockland Risk Services, further growing its personal lines portfolio.
-
Broker Investment Group’s acquisition of David Vaughan & Co, its fourth deal in 2025, via subsidiary Deva Risk Group.
-
Delta Corporate Risk’s partial acquisition of Colmore Insurance Brokers’ business, including the transfer of four employees.
Outlook: Investor Interest Remains, But Challenges Persist
Despite the current slowdown, market fundamentals remain supportive of future M&A activity. Of the 42 deals announced so far in 2025, 32 involved different buyers, close to the 35 seen over the same period in 2024. This diversity suggests broad-based interest, even if overall volume is down.
Furthermore, new private equity capital injections into several consolidating firms may fuel renewed deal activity in the second half of the year, assuming supply-side limitations ease.
Related topics：
