India, Japan emerge as APAC insurance M&A hubs in 2025

India and Japan stood out as Asia-Pacific's bright spots for insurance M&A activity in 2025 as the region saw overall deal count fall to its lowest level in five years.

Asia-Pacific recorded 71 insurance M&A deals in 2025, down from 86 in 2024, according to S&P Global Market Intelligence data.

Australia and New Zealand, historically the region's most active insurance M&A market, saw the number of deals drop to 16 in 2025 from 26 in 2024. Southeast Asia mirrored this trend, with nine deals in 2025 compared to 18 in the prior year.

In contrast, Japan and India saw an increase in M&A activity by volume. Japan's deal count rose to 17 in 2025, the highest level recorded in five years. India rebounded with 13 deals in 2025, following a period of sluggish activity with only nine deals in 2024.

India rising

India also dominated in terms of overall disclosed deal value, recording around $2.87 billion in 2025. The largest transaction in the market was Allianz SE's sale of its 23% stakes in Bajaj Allianz General Insurance Co. Ltd. and Bajaj Allianz Life Insurance Co. Ltd. for $2.78 billion. A final 3% stake sale is expected by the second quarter of 2026, which would mark the German insurer's full exit from its Indian insurance joint ventures with the Bajaj Group.

"We were not entirely happy in our setup with Bajaj because we were limited... in a minority role, and we wanted to have a stronger positioning into our activities in India," Allianz CFO Claire-Marie Coste-Lepoutre told journalists in May 2025.

Bajaj Finserv changed the name of the joint ventures to Bajaj General Insurance Ltd. and Bajaj Life Insurance Ltd. right after securing regulatory approvals for the stake sale.

– Use the screener to access M&A data on the S&P Capital IQ Pro platform. – Read the 2026 outlooks for the US life, health and P&C insurance sectors. – Read about potential M&A activity in the global insurance sector on In Play Today and a summary of recently announced deals on M&A Replay.

India's insurance market growth will outpace mainland China and the US, driven by regulatory reforms that are expected to enhance transparency, attract more capital, and expand insurance access, according to Swiss Re AG.

A notable regulatory change is the government's decision to raise the foreign direct investment limit in the sector to 100% from 74%, which consulting firm Deutsche Inc. said will encourage greater participation from global insurers. The wider insurance reform expands merger and listing opportunities as it allows insurance companies to combine with non-insurance entities, such as financial technology companies or service providers, as long as the resulting business remains an insurer.

"This legal flexibility could unlock a new wave of strategic transactions and reshape the competitive landscape," according to Deutsche.

The only other billion-dollar insurance deal in Asia was E.SUN Financial Holding Co. Ltd.'s pending acquisition of Mercuries Life Insurance Co. Ltd. for $1.39 billion in Taiwan. E.SUN executives said the deal is financially sustainable and complements its banking operations, according to an earnings call transcript. The merger will make E.SUN Taiwan's sixth largest financial holding company.

Cross-border trend

The year saw several cross-border deals as insurance players look to Asia for geographic expansion. Notable examples of such transactions include Chubb Ltd.'s purchase of LMG Insurance PCL in Thailand for $321 million and Asahi Mutual Life Insurance Co.'s pending acquisition of MVI Life Co. Ltd. in Vietnam for $170 million.

In Japan, global investment firm KKR & Co. Inc. pushed into the insurance distribution market with its acquisition of Hoken Minaoshi Hompo Group Inc. from Japanese private equity firm Advantage Partners Inc. Global broker Howden Group Holdings Ltd. also expanded further into Japan about a year after entry with its acquisition of a majority stake in Holos Holdings Co. Ltd., a retail insurance broker.

Australia continued to attract US-based players, with Arthur J. Gallagher & Co. and United Risk Global LLC among the entities that targeted insurance brokers in 2025.