Global deal activity declined in the first seven months of 2025. New data from Global Data shows a 2% year-on-year drop. The slump affected mergers and acquisitions (M&A), venture financing, and private equity deals.
All three sectors shrank. M&A activity fell by about 1%. Venture financing was down 4%. Private equity deals saw the sharpest drop at 14%.
Aurojyoti Bose, a lead analyst at Global Data, commented on the trend. “This decline suggests a cautious approach by investors,” Bose said. He linked the caution to economic uncertainties and shifting markets. Bose added that the coming months will show if this is a temporary setback or a longer downturn.
Regional results were mixed
The slowdown was not the same everywhere. North America and Europe both saw a 4% reduction in deal numbers. Central and South America contracted by 9%. The Middle East and Africa region fell by 10%.
In contrast, the Asia-Pacific area was a bright spot. It registered 3% growth. This growth was supported by strong activity in China, India, and Japan.
The insurance sector mirrored the global slowdown.
A report from law firm Clyde & Co showed a major drop. Insurance carrier M&A fell to its lowest half-year total since the 2008 financial crisis. Only 95 deals were completed in the first half of 2025. This is down from 106 a year ago and far below the 10-year average of 192.
The firm said insurers avoided large deals. High valuations and economic uncertainty made them wary. Instead, many focused on smaller domestic deals and share buybacks. Some larger deals did close, including Sentry Insurance’s $1.7 billion purchase of The General.
One area held steady: managing general agents (MGAs)
Interest in MGA platforms remained strong. Clyde & Co said MGAs are attractive because they require less capital and are flexible. Activity was concentrated in North America, Europe, and the Middle East.
There is hope for a rebound later this year
Peter Hodgins, global head of corporate insurance at Clyde & Co, said deals are complex and taking longer to complete. However, he sees positive signs.
“There’s evidence that pent-up demand will result in higher activity later this year,” Hodgins said. He noted that major insurers are showing interest in acquisitions, especially to enter emerging markets. He expects the strong trend of MGA deals to continue into 2026.
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