Appetite for Insurance M&A Remains as AI Enters the Chat, Says PwC

Appetite from insurance mergers and acquisitions remains, but the industry’s use of artificial intelligence is expected to enter the equation to affect strategies.

According to finding from PwC, the insurance sector logged about $29.6 billion in deal value from 191 disclosed transactions from the start of December 2025 to the end of May 2026. This is down from 207 deals with a valuation of $31.8 billion during the prior six-month period ending November 30, 2026.

PwC said M&A appetite hasn’t waned. Better industry combined ratios are attracted interest, particularly for specialty carriers, MGAs, fronting carriers, and other E&S business, said PwC.

Private equity remains active—strong but more selective, said PwC—and was included in some of the more significant deals of the last six months:

• In December 2025, Howard Hughes Holdings acquired Bermuda-based reinsurer Vantage Group Holdings for $2.1 billion from Carlyle and Hellman & Friedman.
• In December 2025, Willis Towers Watson agreed to acquire tech-enabled insurance broker Newfront Insurance Holdings for $1.45 billion, representing a significant brokerage consolidation move that also folds an insurtech-native platform into a top global insurance broker.
• In December 2025, The Baldwin Insurance Group acquired Cobbs Allen Capital Holdings for $1.41 billion, extending its retail brokerage and specialty footprint.
• In February 2026, Enstar Group acquired workers’ compensation specialist Accident Fund Holdings from Blue Cross Blue Shield of Michigan for $1.59 billion.
• In March 2026, Corebridge Financial and Equitable Holdings announced a merger valued at about $22 billion—a combination of two scaled retirement, life insurance and wealth management platforms with approximately $1.5 trillion in assets.

In the meantime, said PwC, “Public and private markets are evaluating if AI will enable new entrants to capture share by delivering brokerage services at a structurally lower cost, or if incumbent brokers can leverage AI to improve operating efficiency and sustain margins. The outcome is expected to influence valuations, capital allocation decisions, and M&A strategy.”

AI is also viewed as an opportunity for many carriers and reinsurers as they turn up investments in underwriting, claims, and workflow. The outcome may improve valuations and contribute to more M&A activity, said PwC.

The uptick in premium rate increases over the last several years in most lines of business has moderated and, with AI’s impacts, distributor valuations are lowering. Distribution deal volumes are likely to moderate, said PwC.

“Deal activity is likely to broaden beyond traditional P&C brokerage,” said PwC. “We expect continued M&A in adjacent, insurance-like product categories, including home and product warranty, vehicle finance and insurance, credit and payment protection, and other ancillary distribution platforms.”

Topics InsurTech Mergers & Acquisitions Data Driven Artificial Intelligence