UK insurance distribution merger and acquisition (M&A) activity slowed in May, following a more active April, according to a MarshBerry report.
Only seven new transactions were announced during the month, marking a return to the lower levels of activity seen earlier in the year. As of the end of May, deal volumes for 2025 are 30% below the same period in 2024, with 42 transactions announced year to date.
April’s brief uptick in deals coincided with the end of the tax year and a change to Business Asset Disposal Relief, but this momentum did not carry into May. The current pace suggests that total deal volumes for 2025 will fall short of the 150-plus deals recorded in each of the previous two years.
Smaller transactions continue to account for most of the market activity. So far this year, 69% of announced deals have involved targets valued under £5 million, compared to a long-term average of 59% since 2016. Only 14 transactions have involved businesses with 20 or more employees.
Despite the slower pace, large transactions are still taking place. May saw the year’s fourth deal valued above £100 million. Other sizeable transactions are understood to be under discussion.
However, the company said the overall decline appears to be primarily supply-led. MarshBerry analysis showed that the number of privately owned brokers available for acquisition continues to fall. New broker formation remains limited and the ability of new entrants to scale remains a challenge. This stands in contrast to the managing general agent (MGA) space, where new business activity remains comparatively high.
While buyer demand is still present, it varies, according to the report. A number of active consolidators are focusing on other priorities, including refinancing, previous acquisition integration or expansion into other markets. Some of the more active buyers in recent years have not made any acquisitions so far in 2025. This shift in buyer activity, alongside the supply constraints, has contributed to the slower pace of deal-making.
Still, MarshBerry said several market indicators suggest continued interest in UK insurance distribution. Of the 42 deals announced so far in 2025, 32 involved different buyers, close to the 35 recorded at the same point in 2024. A number of consolidators have secured new private equity backing this year, which may support future acquisitions.
Private equity has played a smaller role in deal count terms, with only 40% of year-to-date deals involving PE, its lowest share in any full year since before 2016. However, it continues to dominate in terms of deal value. All of the year’s largest transactions have had PE involvement, the report said.
Privately owned brokers have also made a noticeable contribution to activity in 2025. More than half of the deals announced in May involved independent buyers. While these transactions have all involved businesses valued below £5 million, they indicate that non-PE buyers remain active in the market, particularly in smaller, local acquisitions.
The largest transaction in May involved JMG Group, which secured new investment from US-based private equity firm GTCR. The firm will invest alongside existing backer Synova, with CEO Nick Houghton continuing in his role. The deal comes at a time when several PE-backed firms are facing greater scrutiny in refinancing negotiations.
Other transactions during the month included Optio Group’s acquisition of Custodian Management, a specialist MGA focused on professional and management liability. Clear Group also added Protect Underwriting to its recently launched MGA division, Shape Underwriting.
In the personal lines segment, Niche Box Group acquired Next Generation Ins Group, which trades as Cycler, adding dedicated bicycle and e-bike insurance products to its portfolio. GOAT Insurance, the trading name of Sentreos, acquired the book of business from Rockland Risk Services, which operates as IGG Insurance.
The Broker Investment Group announced its fourth deal of the year with the acquisition of David Vaughan & Co, a community broker in Wales, via its subsidiary Deva Risk Group. Delta Corporate Risk, based in Macclesfield, acquired a book of business from Colmore Insurance Brokers, with four staff transferring as part of the transaction.
