Global dealmaking activity softened in the first seven months of 2025. New data shows a cautious approach from investors amid economic uncertainty.
The total volume of mergers, acquisitions, venture funding, and private equity deals fell by 2% compared to the same period last year. This is according to a report from Global Data.
All major deal categories saw a decline. Venture financing dropped by 4%. Private equity transactions fell sharply by 14%. Mergers and acquisitions (M&A) were mostly flat, dipping only 1%.
“The decline suggests a cautious approach,” said Aurojyoti Bose, lead analyst at Global Data. He pointed to economic uncertainties and shifting markets as possible causes. “The coming months will be critical. They will show if this is a temporary setback or a longer downturn.”
Regional Differences Were Significant
The slowdown did not affect all regions equally. North America and Europe both saw deal volumes fall by 4%. Deals in Central and South America dropped by 9%. The Middle East and Africa region saw a 10% decrease.
In contrast, the Asia-Pacific region was a bright spot. It registered 3% growth. This was powered by increased activity in China, India, and Japan.
Country-level data showed even greater divergence. The US declined by 3%. The UK fell by 5%, and Canada by 11%. Meanwhile, China’s deals rose by 4%, India’s by 10%, and Japan’s by a strong 24%.
Insurance Sector Hits Post-Crisis Low
The global trend was mirrored in the insurance industry. A report from law firm Clyde & Co shows carrier-led M&A hit a historic low.
Only 95 deals were completed in the first half of 2025. That is the lowest half-year total since the 2008 financial crisis. It is down from 106 deals in the same period in 2024. The 10-year average for the first half of a year is 192 deals.
The firm said insurers avoided large deals due to high valuations and economic worries. Many instead focused on smaller domestic transactions and share buybacks.
Some larger deals did close. These included Sentry Insurance’s $1.7 billion purchase of The General.
Interest in MGAs Remains Strong
While overall insurance M&A fell, one area held steady: managing general agents (MGAs). These are firms that act like insurers but use carrier capital.
Clyde & Co said MGAs are attractive because they require less capital and are flexible. Interest was strong in North America, Europe, and the Middle East. Strategic buyers are building MGA networks for future growth.
Geographically, the US led with 35 insurance transactions. It was followed by Europe/Middle East/Africa (29) and Asia-Pacific (25).
A More Active Future is Expected
Despite the slow start, experts expect a busier second half of the year.
“Getting deals done is hard and they are taking longer to complete,” said Peter Hodgins, global head of corporate insurance at Clyde & Co. “But there’s evidence that pent-up demand will result in higher activity.”
Hodgins noted that major insurers are showing interest in acquisitions. They are preparing to enter emerging markets.
“International carriers are readying themselves for M&A,” he said. “The MGA story will continue into 2026.”
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