PricewaterhouseCoopers disclosed that between June 1 and November 30, the insurance industry completed a total of 207 M&A transactions with a transaction volume of US$31.8 billion. It is expected that transaction activity in 2026 will be roughly consistent with this year.
The company said transaction volumes have remained stable over the past 12 months as a continued inorganic growth strategy drove strong buyer interest and a steady stream of sellers entering the market met buyer demand.
Notably, seven insurance mega-deals exceeding $1 billion have been announced in the past six months alone.
There were 207 deals worth $31.8 billion in the period, compared with 209 deals worth $30 billion disclosed in the previous six months.
Looking ahead to the first half of 2026, PwC said operators are likely to continue to focus on capital optimization and portfolio reshaping through M&A transactions.
M&A activity in property and casualty insurance is increasing as many carriers report improved loss ratios and record underwriting profitability, making the industry more attractive to investors and strategic buyers, the company explained.
Meanwhile, property insurance premium rates are reportedly under pressure, which could lead to additional deal activity as carriers seek to sustain top-line growth through acquisitions.
Meanwhile, life and annuity (L&A) platforms remain attractive to private equity and other investors looking to “capture carry yields and expand capital” under management.
PwC added: “In addition, we expect international interest in U.S. Insurance & Casualty and P&C insurers to continue. Reinsurance capacity is also expected to remain active as insurers increasingly turn to sidecar and structured reinsurance solutions to manage volatility and optimize capital outside of traditional M&A.”
The company concluded: “Insurance distributors remain attractive to corporate buyers looking for revenue and new talent, while L&A providers continue to attract interest from private equity firms and other investors seeking longer-term assets and expansion into international markets.
“In addition, insurance industry companies seeking to achieve top-line growth, optimize capital and reshape investment portfolios remain active sellers.
“As a result, we expect the insurance exchange market to remain active in the first half of 2026. While the overall market faces potential economic headwinds, the insurance industry will benefit from lower interest rates and products that can withstand declines in consumer performance and confidence.”