Despite some tentative signs of a pickup in activity in January and a couple of sizeable deals in 2026, February was another slow month for insurance distribution mergers and acquisitions (M&A), with only five new transactions to report on. Deal activity is ahead of where it was at this point last year (with only 10 announced deals) but still tracking well below the ‘run rate’ that would see overall deal volumes get back up to the 150+ annual levels of 2023 and 2024.
M&A Market Update
There have been 13 M&A transactions announced to date in 2026, which is up on last year but still well below the longer-term average at this point in the year (18.2). This reduction cannot be explained by any lack of demand. More than half of these deals (eight) have involved a commercial lines target. But there are more than a dozen well-funded and determined consolidators still focused principally on this segment. The majority of these are private equity-backed (PE), and with the continuing soft market conditions they will be finding organic growth – at least at the rates demanded by their backers – a constant challenge. M&A therefore remains a priority; it is an essential part of the business model and the investment case for PE. From a seller’s point of view, conditions remain strong and there is no shortage of choice.
Number of announced UK insurance distribution M&A transactions, since 2016
More than just the ‘usual suspects’: a variety of buyers in 2026 transactions
There were 11 different buyers involved in the 13 deals announced in 2026. Three of these were overseas firms, one is a quoted FTSE 100 insurer, three are privately held, and the remainder were either PE (directly) or PE-backed consolidators. In 2025 there were no fewer than 51 unique buyers of UK firms in the sector, of which 12 were overseas firms. While it is true that a large proportion of all sector M&A involves a relatively concentrated group of serial acquirers (the top 10 most active buyers in 2025 accounted for 58% of all deals), there is still a very broad range of firms active in sector M&A, with many others on the sidelines waiting for the right target, or in some cases being frustrated in their ambitions by the high level of competition for good businesses.
Top 10 acquirers of UK insurance distribution businesses – number of deals and % of all transactions, since 2016
Unique acquirers of UK insurance distribution businesses, since 2016
A deeper analysis on the UK market and M&A market is available
As in previous years, MarshBerry will begin to publish YTD M&A statistics covering the split of transactions by target type, deal size and type of buyer and seller in a few months’ time, when the number of UK deals will likely have increased to a level which makes the analysis for 2026 more statistically relevant. In the meantime, should you want a deeper look at the M&A market and UK market structure more widely, then MarshBerry’s annual UK market review report for 2025 will be available shortly.
Notable transactions (February 2026):
- In a now increasingly rare example of an insurer acquiring a distribution business, motor insurer Admiral announced that it had acquired Flock, a tech-led motor fleet MGA (Managing General Agent) using telemetry data that had previously partnered with Admiral Pioneer, the group’s venture building arm.
- K2 International, the UK-based arm of Warburg Pincus-backed U.S. MGA platform K2 Insurance Services, announced a deal for the D&O business of Rising Edge, a specialty-focused MGA.
- Adler Fairways, which has quietly become one of the most active consolidators in the sector following a string of off-market deals has added McCarroll McConnell & Co., which trades as MCC Insurance Brokers, a long-established broker in Northern Ireland.
Other transactions (February 2026):
- PE-backed consolidator Partners& continued its steady pace of acquisitions with a deal for Holmes Insurance Brokers, a commercial broker in the West Midlands.
- Swansea-based Compare Insurance announced that it had acquired the book of clients from Insure My Business, adding £1.5m of GWP across 3,000 clients and taking on a team of 8 staff.
