North American insurance M&A declines in 2025 as deal value surges in Q4

The aggregate value and total number of North American insurance deals in 2025 fell short of 2024 levels, despite a surge in deal value in the fourth quarter.

Insurance underwriters and brokers were involved in 166 deals totaling $18.88 billion in the fourth quarter of 2025, compared to 194 deals totaling $5.60 billion in the third quarter; 153 transactions totaling $9.97 billion in the second quarter; and 139 transactions totaling $6.68 billion in the first quarter, according to an analysis by S&P Global Market Intelligence.

Despite a notable rise in aggregate deal value for the quarter, the total remained below the fourth quarter of 2024 and 2023, which were $21.70 billion and $23.48 billion, respectively.

In 2025, both the total number of deals and aggregate transaction value were lower than in 2024. There were 652 deals totaling $41.17 billion in 2025, compared to 674 deals totaling $59.32 billion in 2024.

Insurance M&A trends largely mirrored broader North American M&A markets, which saw a surge in total valuation in the fourth quarter of 2025, but a decline in deal volume.

– 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.

Underwriter deals

A notable fourth-quarter deal involving underwriters was the joint acquisition of Convex Group Ltd. by American International Group Inc. (AIG) and Onex Corp., valued at $7 billion.

Under the terms of the deal, Onex will acquire a 63% equity stake in Convex for approximately $3.8 billion, while AIG will acquire a 35% equity stake in Convex for approximately $2.1 billion. Onex intends to roll over its existing $0.7 billion interest in Convex. The remainder will be financed through $1.5 billion in cash from Onex's balance sheet and pending asset sales, $1 billion in debt financing secured on existing private equity and credit assets, and $0.6 billion in equity financing proceeds from the AIG subscription.

"Since its founding, Convex has rapidly grown into a major specialty property and casualty (re)insurer with up to $6 billion of gross premium written expected in 2025, 25% compound annual growth in gross premium written over the last three years, and an 18% average return on equity over the past three years," according to a news release announcing the sale. "The Convex management team will retain a significant economic interest in the business, ensuring strong ongoing alignment with Onex and AIG."

Announced on Oct. 30, the deal is expected to close in the first half of 2026.

Aquarian Holdings LLC acquired Brighthouse Financial Inc. for $4.13 billion in another notable fourth-quarter deal. The deal, announced in November, is expected to close in 2026.

Aquarian Capital, a diversified global holding company, said it will invest in Brighthouse Financial's platform and distribution franchise and enhance product design, development and innovation. Aquarian Capital also plans to bolster Brighthouse's investment management capabilities through a strategic relationship with Aquarian Investments, its investment management platform.

Following the closing of the transaction, Brighthouse Financial will operate as a stand-alone entity within the Aquarian Capital portfolio. Eric Steigerwalt will continue as president and CEO of Brighthouse and the company will remain headquartered in Charlotte, North Carolina, and retain its name and brand, according to a Dow Jones Newswires report.

Broker deals

There were five large deals involving insurance brokers in the fourth quarter of 2025.

The largest broker-involved deal of the quarter was Willis Towers Watson PLC's (WTW) acquisition of Newfront Insurance Services LLC for $1.45 billion. The deal, announced on Dec. 12, 2025, closed Jan. 27.

The acquisition of Newfront expands WTW's reach in the US middle market and presence in specialties such as technology, fintech and life sciences, WTW said in a news release. Newfront's business insurance and total rewards segments will be combined with WTW's risk and broking, and health, wealth and career segments, respectively.

The second-largest broker-involved deal involved the acquisition of Cobbs Allen Capital Holdings LLC by The Baldwin Insurance Group Inc. for $1.41 billion. The deal, announced on Dec. 2, 2025, closed on Jan. 1.

Baldwin expects revenue synergies from its acquisition beyond those it has formally projected, according to senior executives.

Projected revenue benefits from the acquisition exclude any potential revenue growth from cross-selling or upselling products, Baldwin CFO Brad Hale told analysts on a Dec. 3, 2025, deal call. "If anything, we think there's additional opportunity here if you look at what we've achieved in prior partnerships," Hale said.

"If we can't capture meaningful momentum there, then I would be very, very disappointed," CEO Trevor Baldwin added on the cross-selling opportunities.

Other large deals from the quarter included CVC Capital Partners PLC's acquisition of Bamboo Ide8 Insurance Services LLC for $840 million, Tokio Marine Holdings Inc.'s joint acquisition of American Collectors Insurance Inc., J.C. Taylor Insurance LLC and Condon and Skelly Inc. for $620 million, and Arthur J. Gallagher & Co.'s acquisition of Tompkins Insurance Agencies Inc. for $223 million.