North American insurer M&A deal value shrinks in Q1

North American insurance underwriter deal value dropped significantly in the first quarter, even as the number of transactions increased slightly.

Aggregate transaction value decreased by about 40% to $4.92 billion quarter over quarter, but it remained notably higher than the first quarter of 2024's recent low of approximately $520 million.

Insurer deal volume rose slightly quarter over quarter, from 17 deals at the end of 2024 to 19 in the first quarter of 2025. The deal total matched the 19 total underwriter deals seen in the first quarter of 2024.

The decrease in the aggregate value of transactions involving insurance underwriters contrasted with the M&A trends in the broader US and Canadian markets, which saw deal volumes decline but aggregate values rise amid uncertainty following numerous trade tariff announcements by US President Donald Trump.

– 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.

The largest North American underwriter deal of the first quarter was the purchase of Legal & General America Inc.'s US insurance entity, comprising its US protection and US pension risk transfer businesses, by Meiji Yasuda Life Insurance Co. Valued at $2.28 billion and announced Feb. 7, the transaction is expected to be completed near the end of 2025.

The sale supports L&G's long-term strategic goals, according to a news release, and "demonstrates continued momentum in executing the strategy."

The deal also stands out as part of a larger trend of Japanese insurers seeking to expand outside of Asia.

The second-largest underwriter deal of the quarter was The Doctors Co. an Interinsurance Exchange's purchase of ProAssurance Corp. for $1.3 billion.

Per the deal specifics, after it likely closes in the first half of 2026 pending approval from shareholders, the specialty insurer would no longer be traded on the New York Stock Exchange, instead operating as a wholly owned subsidiary of The Doctors Co.

The combined company would have assets of about $12 billion, medical-malpractice insurer The Doctors Co. said in a news release.