India, Malaysia secure large insurance deals as Q2 M&A slows

India and Malaysia recorded notable multi-million-dollar transactions in the second quarter amid an overall slowdown in insurance M&A activity.

The largest deal of the period was Prudential PLC's acquisition of a 75% stake in India's Bharti Life Insurance Co. Ltd. for $437.8 million, according to S&P Global Market Intelligence data. The acquisition targets favorable demographic trends and low life insurance penetration in India, a market that Prudential CEO Anil Wadhwani described as "strategically important and exciting" for the Hong Kong-based life insurer.

The deal follows India's easing of rules on foreign ownership for insurers. In December 2025, India amended its insurance legislation to allow 100% foreign direct investment in the sector, removing the previous cap of 74%.

Industry observers praised the reform, with law firm Skadden Arps Slate Meagher & Flom LLP writing in February that the move would "modernize the sector, attract foreign capital, enhance regulatory oversight and align India's insurance regime with global standards, fostering growth and increased market participation for insurance companies and foreign investors."

Narendra Ganpule, partner at professional services firm Grant Thornton Bharat, described the change as a "watershed moment" for the industry, noting that it removes challenges in finding domestic partners and opens new opportunities for global insurers, according to a January report.

The quarter also saw the second-largest deal in both Malaysia and Southeast Asia so far, with MNRB Holdings Bhd.'s pending acquisition of the remaining 80% stake in Labuan Reinsurance (L) Ltd. that it does not own for $100.7 million. The deal is expected to strengthen MNRB's international reinsurance platform by providing direct access to the Lloyd's of London market via Labuan Re Underwriting Ltd., according to a May news release.

Australia recorded the third largest deal as nib holdings ltd. continued to shed its travel business to focus on health. Nib agreed to sell a large part of its travel insurance business, including the Travel Insurance Direct brand, to Allianz Partners SAS for $35.7 million. The deal excludes World Nomads, which nib agreed to sell to SiriusPoint Ltd.'s International Medical Group Inc. in February.

"This transition simplifies our portfolio and allows us to focus our capital and capability where we see the strongest long-term value," nib CEO Ed Close said in a news release.

- Use the screener to access M&A data on the S&P Capital IQ Pro platform. - Access the Chart Builder tool. - 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

Dealmaking momentum slows

Asia-Pacific insurance M&A activity declined significantly in the second quarter as major regional hubs saw a marked drop in the number of transactions.

The region recorded just 16 insurance M&A deals during the period, down from 22 in the previous quarter and the lowest number in the past five quarters.

The slowdown was most pronounced in Australia and New Zealand, where deal volumes dropped to two transactions from the nine deals announced in the first quarter. The sharp decline contributed significantly to the overall regional slowdown, as Australia and New Zealand had been the major driver of activity in the first quarter of 2026.

Japan had a steady activity, with five deals announced, matching its first-quarter activity. India also maintained moderate momentum with three deals, up from two in the previous quarter.

While the number of insurance deals in Southeast Asia declined by one from the first quarter, the region's deal activity remains higher than the quarterly figures recorded in 2025.