Asia-Pacific Insurance M&A Hits Five-Year Low

The Asia-Pacific (APAC) insurance sector witnessed a marked slowdown in mergers and acquisitions (M&A) activity in 2025, reaching its lowest level in five years, according to S&P Global Market Intelligence. The decline reflects a broader regional trend of cautious deal-making, though pockets of resilience were evident in India and Japan, which recorded growth in M&A transactions and signs of market stability.

In total, 71 insurance M&A deals were completed across the APAC region in 2025, down sharply from 86 in 2024. The contraction highlights a general retreat in consolidation and expansion ambitions across several markets. Traditional leaders such as Australia and New Zealand experienced a substantial reduction in deal activity, while Southeast Asia also saw a notable decline in transactions.

By contrast, Japan and India emerged as bright spots. Japan recorded 17 deals, the highest in the past five years, while India’s activity rose to 13 deals, up from nine in 2024. This growth, amid a regional downturn, underscores the selective resilience of these markets and provides a counterbalance to the overall slowdown in the APAC insurance sector.

The largest publicly disclosed transaction in the region involved Germany’s Allianz SE, which sold a 23% stake in both Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance, valued at approximately $2.78 billion. This divestment forms part of Allianz’s strategic exit from its Indian joint ventures, expected to be completed by mid-2026. India’s total deal value for 2025 reached around $2.87 billion, the highest in the region.

Cross-border transactions continued to play an influential role. Thailand’s LMG Insurance was acquired by CHUBB Limited, while Japanese investors, including KKR & Co., expanded their footprint in Japan’s insurance distribution sector. Foreign participation in Japan’s brokerage and retail insurance markets also increased, reflecting sustained international interest despite overall regional slowdown.

The table below summarises the key APAC insurance M&A metrics for 2024–2025:

Although 2025 signals a contraction in regional M&A activity, the strong performance in Japan and India suggests a more nuanced picture. Regulatory reforms, shifts in investor strategies, and continued cross-border interest are expected to create more favourable conditions in 2026, particularly in markets adapting to new capital requirements and governance frameworks.