The Big Question: Why has UK broker M&A slowed – and what can UKGI expect next from acquisition activity?

Phil Barton, chief executive, Partners&

I believe there are both demand and supply side issues in the current UK general insurance (UKGI) merger and acquisition (M&A) market, as well as significant macroeconomic and political influences currently affecting the marketplace.

From an acquirer’s perspective, multiples remain high for relatively small privately-owned businesses when compared to the publicly listed stock, which are still recovering from the market reaction to the threat of artificial intelligence (AI) disintermediation of commercial insurance broking.

As ever, vendors’ expectations are slow to adapt to changes in the market, even if these changes are somewhat exaggerated.

Equally, many of the serial acquirers in the sector have significant debt and are potentially constrained in their ability to fund further acquisition activity, particularly when the economic outlook is uncertain and their organic growth objectives are under pressure.

Furthermore, we are in a period of GI market premium softening in the UK, which has challenged a lot of brokers’ organic growth capabilities and impacted the value of their portfolio, making them more reliant on their capability to deliver new business.

From the supply side perspective, there is no doubt that the middle of the UK market has been hollowed out from many years of consolidation and, as such, there are fewer larger brokers available, meaning that an acquisitive business needs to be highly proficient in integrating multiple smaller businesses in order to deliver value for their own shareholders.

To win in this new paradigm, it is essential for an acquirer to communicate a compelling vision rather than just wave their cheque book and to focus on talent acquisition as a natural hedge with ongoing specialist M&A.

Partners& remains extremely optimistic about the opportunities for attracting well-run commercial broking, employee benefits and MGA businesses with a track record of strong organic growth and we expect valuations for quality businesses to remain strong.

In essence there is a flight to quality, with valuations governed more by metrics such as organic growth, application of technology or AI and culture or specialism.

With the potential for capital gains tax (CGT) changes signposted by the new prime minister, I would expect that M&A activity is set to increase over the next six months, given the attractiveness of the fundamentals in our market.

Jeremy Riley, senior advisor for UK insurance practice, FTI Consulting

Approximately 4,000 UKGI brokers are independent, but the pool of large and medium-sized acquisition targets has diminished significantly following decades of consolidation, making it increasingly difficult for consolidators to grow efficiently through M&A.

UKGI brokers and MGAs are looking outside the UK for acquisition opportunities, which significantly expands the pool of potential larger transactions.

International markets do not necessarily offer lower valuation multiples anymore, but they can provide access to more sizeable targets.

As insurance market conditions continue to soften, buyers are placing a greater focus on delivering underlying organic growth rather than rate hikes alone.

With greater scrutiny on integration and organic growth during due diligence, appetite for completing large numbers of smaller acquisitions has declined. Some brokers are opting for targeted team hires that enable them to add specialist expertise without taking on any integration burden.

Lower valuations may also have contributed to the decline in M&A volumes. 

Large, listed brokers have experienced significant share price volatility over the past six months.

While valuation expectations have adjusted amongst larger consolidators, smaller sellers tend to be anchored to historic peak valuations, resulting in buyers seeing less scope for multiple arbitrage.

The higher cost of debt adds further pressure. More expensive financing, combined with reduced multiple arbitrage, weakens the economics of debt-funded acquisitions and will encourage consolidators to be more selective.

This does not mean that UKGI consolidation is over.

The remaining pool of independent brokers is still sizeable, while recovering listed broker valuations may gradually narrow the valuation gap.

However, acquisition activity is likely to become increasingly targeted, with acquirers shifting from high volume roll-up strategies towards strategic acquisitions and accretive value creation initiatives.

Oscar Holloway, managing director of M&A, Clear Group

Reports of slowdown in broker M&A may not tell the full story.

While volumes have eased from the exceptional highs of recent years, consolidators remain busy in 2026. Competition for independents is intense, particularly for those with sustained growth and expertise.

The Clear Group continues to welcome high quality acquisitions across its retail, London market and MGA pillars attracted to a supportive culture that helps vendors achieve their potential.

The buyer landscape has shifted. Traditional consolidators – Ardonagh, PIB, Howden – have refocused on international expansion and other strategic priorities of late.

Meanwhile, a new generation of buyers has emerged. Recapitalised platforms – JMG, Seventeen and Jensten – newly private equity (PE) backed initiatives – Inflexion and Apiary – and alternative succession models – The Broker Investment Group (TBIG) – have added to market depth.

Market conditions have played a role. Interest rates have impacted returns and leverage appetite for some acquirers and softening rates add uncertainty to earnings growth.

However, the rationale for consolidation remains compelling in the face of rising regulation, growing technology and AI investment, as well as client demand for broader expertise and geographic reach.

Seller attitudes have also evolved. Some previously delayed exit plans in the hope that hardening rates would strengthen valuations.

Prolonged softness and a realisation that earnout structures will capture a future recovery have encouraged many back to market.

The outlook for broker M&A remains strong, but priorities have shifted. Consolidators face investor scrutiny to integrate acquisitions and optimise their business model.

Transactions will focus more on quality, cultural fit and strategic alignment.

Valuation discipline will remain tighter, but there is significant capital available and no shortage of motivated buyers.

Chris Haggart, group chief executive, The Broker Investment Group (TBIG)

The UK remains one of the most attractive insurance broking markets in the world.

There is significant capital available for investment, overseas interest in UK brokers remains strong and there are still more than 2,500 high quality independent brokers who will, at the right time, consider partnering with the right investor to support the next phase of their growth.

At TBIG, we remain very optimistic about the market. Being independently funded means we’re able to invest for the long term without the constraints faced by some acquirers.

We continue to see a strong pipeline of opportunities and expect to complete more acquisitions this year than we did last year.

Our focus has never been on simply completing transactions – it’s about partnering with high-quality businesses, retaining entrepreneurial management teams through meaningful equity partnerships and investing alongside them to accelerate future growth.

Equally, not every broker is looking to sell a majority stake.

Through our sister company, Minority Broker Partnerships, we’re also seeing strong demand from ambitious brokers who want investment capital while retaining total control of their business.

We expect Minority Broker Partnerships to complete around half a dozen investments this year, giving owners greater choice in how they access growth capital.

The pace of M&A may be more measured than in recent years, but the long-term drivers remain firmly in place.

Across TBIG and Minority Broker Partnerships, we see a broad cross section of vendor activity every day and our confidence in the future of the UK insurance broking market is still as strong as before.

Jamie Richards, head of M&A, Ripe

The UKGI M&A landscape is highly selective and quality-driven.

Capital remains expensive, so buyers need greater conviction in the upside and a clear margin of safety.

Meanwhile, the gap between buyer and seller value expectations has widened and over a decade of consolidation has left relatively few high-quality, scaled businesses available.

Expanded FCA requirements are also raising the stakes, making compliance a critical differentiator.

However, due diligence has increased across the board with buyers placing greater emphasis on integration and driving value.

An uncertain pricing environment and compliance gaps can require buyers to take a more cautious approach, resulting in prolonged negotiations, deal slowdowns and occasional transaction breakdowns.

The Ideals M&A Outlook 2026 revealed average transaction completion timelines stretched to 264 days in 2025, up from 205 in 2020.

Buyers increasingly rely on complex deal structures, such as escrows, earn outs and warranty protections. These can facilitate transactions but also shift risk back onto sellers, lengthening negotiations as parties work through risk allocation.

Conversely, regulatory compliance and wider business preparedness provide greater execution certainty. Well-prepared assets build buyer confidence, support faster diligence, stronger bidding tension and protected valuations.

Technology integration and cultural alignment will continue to shape buyer appetite.

With post-deal cultural friction contributing to underperforming acquisitions, private and owner-managed sellers are increasingly prioritising buyers who will protect their legacy.

Meanwhile, digital capabilities unlock growth for specialty MGAs with fewer legacy constraints.

Looking ahead, acquisition activity is likely to remain selective. Insurance businesses that embed robust governance, scalable operating models and digital capabilities early will maximise value and achieve a smoother transaction.

Oli Homer, head of M&A, Gallagher

There are a few reasons for the slowdown.

Firstly, there are generally fewer targets, particularly businesses of scale, than in the past as the UK broker market is now heavily consolidated.

As well as less opportunities to purchase brokers, the pool of buyers has reduced.

This is due to the consolidation and previous buyers being purchased themselves, firms no longer actively undertaking M&A due to internal pressures and in some cases we are seeing buyers focused on overseas strategies and growth.

At the smaller end, fiscal uncertainty and onerous regulation have arguably dampened enthusiasm for startups – so fewer new firms are entering the market.

Another big driver is the current soft market, which means that organic growth is harder to achieve and many businesses have therefore not been able to reach the scale they were aiming for and so are less likely to put themselves up for sale than they might at a different part of the cycle.

Private equity has a significant stake in a number of UK brokers and these firms will have target figures in mind for their assets, which they are unlikely to want to reduce, and unless they can achieve these they won’t be keen to sell.

Furthermore, due to the soft market we are seeing some private equity buyers refocusing on other industries, which may currently look more attractive.

We therefore believe there is a real opportunity for strategic buyers like Gallagher who maintain a long-term view and offer a great forever home.