It has been a busy year of M&A in UKGI, with a number of landmark deals that are reshaping the industry landscape.
In the insurer space, the big news story of the year has been Aviva's agreement to acquire Direct Line Group (DLG) for £3.6bn.
Aviva has already exerted itself as the largest insurer in the market with gross written premium (GWP) of almost £6.7bn, but with the DLG acquisition set to add a further £3.9bn , Aviva could soon be the first UK-based insurer to surpass the £10bn barrier.
This deal follows on from a number of other significant insurer transactions in 2024, including RSA's £520m+ acquisition of commercial lines specialists NIG and FarmWeb from DLG.
Meanwhile, Admiral acquired RSA's direct home and pet personal lines operations as RSA made the decision to become a personal lines specialist.
These deals could also have a knock-on effect as we move into 2025. Rumours continue to echo around the industry that Bain Capital could be considering the sale of Esure, with Ageas rumoured to be waiting in the wings following its failed bids for DLG earlier in the year.
When it comes to the broking sector, M&A continues to be as prevalent as ever, with well over 100 deals completing over the last 12 months.
While London and the South East continue to be the epicentre for activity, the North West has become a particularly important region, accounting for more than 10% of all deals in 2024.
Seventeen Group has been one of the most active players, making a number of regional acquisitions, including Keith Miller Insurance Services and North West Risk Solutions.
The biggest broking deal of the year, however, is the mega-merger between Markerstudy and Ardonagh-owned Atlanta in a deal worth £1.2bn, which completed in June 2024.
The newly combined broker is estimated to now control more than £3bn of GWP with a customer base approaching one million.
Looking ahead, the significant M&A activity in 2024 has set the stage for continued transformation within the UK insurance industry.
As insurers and brokers seek to strengthen their market positions and adapt to evolving customer needs, the ripple effects of these deals are likely to influence strategies and competition well into 2025. With rumours of further consolidation and new partnerships on the horizon, next year could prove to be another pivotal year for the sector.
