Mergers and acquisitions in the UK insurance industry saw a rise in 2023, contrasting with a broader slowdown in deal activity across Europe, the Middle East, and Africa. According to S&P Global Market Intelligence data, "there were 156 acquisitions of UK insurance targets last year, up from 130 in 2022."

While deal numbers across EMEA decreased, the UK stood out as the most active M&A market in the region. The main driver behind the UK's volume was broker M&A, with a large number of small brokers and larger groups pursuing buy-and-build strategies. Notable deals included "arch-broker consolidator Ardonagh Group Holdings Ltd.'s pending sale of Atlanta Group Ltd." and "RSA Insurance Group Ltd.'s acquisitions and sales throughout the year."

Despite the UK leading in deal activity, other countries also saw significant transactions. "Assicurazioni Generali SpA topped the table of deals with its €2.30 billion purchase of Liberty Mutual's Spanish business." Additionally, there were notable acquisitions by companies like Aviva PLC and Caisse Centrale de Réassurance SA.

Looking ahead, early signs suggest that 2024 will be another active year for insurance mergers and acquisitions. Companies like Aviva and ageas SA/NV have expressed interest in acquisitions, with Aviva already agreeing to buy Probitas Holdings (Bermuda) Ltd. However, Generali CEO Philippe Donnet dismissed rumors about the company's wish list but hinted at a broader M&A strategy.

Broker consolidators continue to drive M&A activity, with Ardonagh announcing acquisitions in 2024. Furthermore, the UK pensions risk transfer market is also playing a role in deals, as seen with Rothesay Life PLC's recent acquisition announcement.

In conclusion, while EMEA deal volume experienced a decline in 2023, the UK insurance industry remains a standout performer in the M&A landscape.