North American insurance deal activity grows in Q3, even as total value drops

The number of North American insurance deals increased in the third quarter of 2025 compared to the first two quarters of the year, even as the industry's aggregate transaction value fell.

Insurance underwriters and brokers were involved in 150 third-quarter deals totaling $5.60 billion in aggregate, compared to 136 transactions totaling $9.97 billion in the second quarter and 132 transactions totaling $6.68 billion in the first quarter, according to an analysis by S&P Global Market Intelligence.

Insurance M&A trends contrasted with the the broader US and Canadian markets, where transaction value increased but deal totals decreased.

Overall, North American M&A deals announced from July through September were collectively valued at $608.39 billion, up nearly 50% from the second quarter, according to S&P Global Market Intelligence data. The aggregate deal value was higher even as the number of transactions edged down by a bit more than 1%.

– In Play Today highlights potential mergers and acquisitions in the global insurance sector, while M&A Replay presents a summary of recently announced deals. – Discover the latest trends in insurance M&A across Asia-Pacific and the US broker market. – Access deep dives into insurance transactions across the globe via our Deal Profile feature.

Broker deals

There were two large deals involving insurance brokers in the third quarter.

Ambac Financial Group Inc., via its subsidiary Cirrata VI LLC, entered into a definitive agreement to acquire ArmadaCare LLC for $250 million on Sept. 29.

The merger "will materially accelerate the growth and scale of Ambac's distribution platform, strengthen specialty product diversification and expand relationships with distribution and capacity partners," the company said in a news release announcing the deal.

The second largest broker deal in the third quarter was White Mountains Insurance Group Ltd.'s acquisition of an additional 50% stake in Distinguished Programs Group LLC for $230 million. The deal, which was completed on Sept. 2, gives White Mountains a 51% majority stake in Distinguished Programs.

"[Distinguished Programs] are well-positioned in an attractive and dynamic market, and we look forward to partnering with the team to capitalize on the organic and inorganic growth opportunities ahead," said White Mountains CEO Manning Rountree in a news release.

Underwriter activity

Among the notable deals involving underwriters during the third quarter was Sompo Holdings Inc. subsidiary Endurance Specialty Insurance Ltd.'s acquisition of Aspen Insurance Holdings Ltd. for $3.47 billion.

Sompo's proposed acquisition of Aspen came amid a trend of Japanese insurers expanding into the US market. Aspen had launched its initial public offering just a few months before the deal announcement.

While selling so soon after an IPO may appear unusual, Aspen was likely motivated to sell by Sompo's interest rather than anything related to its own performance, said Piper Sandler analyst Paul Newsome following the sale announcement in September.

"It doesn't make a lot of sense to go through all the steps and the IPO process if the seller already has a private buyer in mind," Newsome said. "Basically, the buyer was likely not around during the IPO process and recently showed up and decided they wanted to spend the money."'

Continuing the trend of Asia-based insurers expanding into the US, the second-largest underwriter deal of the quarter involved the South Korea-domiciled DB Insurance Co. Ltd. acquiring Jacksonvilla, Florida-based The Fortegra Group Inc. for $1.65 billion.