Insurance merger and acquisition appetite remains active, but artificial intelligence is starting to change how buyers assess targets, costs and long-term margins, according to PwC.
PwC reported about $29.6 bn in disclosed insurance deal value across 191 transactions between the start of December 2025 and the end of May 2026. The previous six-month period, which ended on November 30, 2025, recorded 207 deals worth $31.8 bn.
The drop in volume and value does not point to a weaker market. PwC said deal appetite has not faded. Improved combined ratios have drawn buyers toward specialty carriers, MGAs, fronting carriers and excess and surplus businesses.
Private equity remains active, though more selective. Some of the largest transactions over the past six months involved financial sponsors, strategic buyers and insurance groups looking for scale in specialty risk, brokerage or retirement assets.
- In December 2025, Howard Hughes Holdings acquired Bermuda-based reinsurer Vantage Group Holdings for $2.1 bn from Carlyle and Hellman & Friedman.
- The same month, Willis Towers Watson agreed to buy tech-enabled insurance broker Newfront Insurance Holdings for $1.45 bn, adding an insurtech-native platform to one of the largest global brokers.
- The Baldwin Insurance Group also moved in December 2025, acquiring Cobbs Allen Capital Holdings for $1.41 bn and expanding its retail brokerage and specialty position.
- In February 2026, Enstar Group bought workers’ compensation specialist Accident Fund Holdings from Blue Cross Blue Shield of Michigan for $1.59 bn.
- The largest announced transaction came in March 2026, when Corebridge Financial and Equitable Holdings agreed to merge in a deal valued at about $22 bn. The combination brings together two large retirement, life insurance and wealth management platforms with around $1.5 tn in assets.
AI is now moving into M&A discussions in a more direct way. Public and private market investors are weighing whether new entrants use AI to deliver brokerage services at a lower cost structure, or whether incumbent brokers use it to cut expenses and defend margins. PwC expects that question to affect valuations, capital allocation and deal strategy.
Carriers and reinsurers also see AI as an investment case. Many are putting more capital into underwriting, claims handling and workflow systems.
If those projects improve loss selection, expense ratios or operating speed, they will feed into valuations and give buyers another reason to pursue transactions.
Distributor valuations have started to soften as premium rate increases moderate across many lines of business. AI adds pressure by raising questions about future brokerage economics. That points to slower distribution deal volumes, especially where sellers still expect pricing from the stronger rate cycle.
According to Beinsure, insurance M&A is likely to move beyond standard P&C brokerage targets.
PwC expects activity in adjacent insurance-style categories, including home and product warranties, vehicle finance and insurance, credit and payment protection, and ancillary distribution platforms.
The next phase of dealmaking will depend less on broad market confidence and more on whether buyers see defensible earnings. Specialty underwriting, embedded distribution, claims automation and AI-enabled operating models are becoming harder to ignore in valuation work.
