APAC insurance M&A cools with fewer Q3 deals

Despite that, Asian insurers continued to pursue overseas expansion.

Insurance mergers and acquisitions (M&A) activity in Asia-Pacific slowed in the third quarter of 2025, according to an analysis by S&P Global Market Intelligence.

Only 14 insurance M&A transactions were recorded across the region during the quarter, down from 20 in the previous quarter and 17 in the same period last year. 

Japan led with six deals, followed by Australia and New Zealand with three each, whilst India and Southeast Asia recorded one deal apiece. In comparison, the second quarter saw eight deals in Australia and New Zealand, three in India, two in Japan, and one each in mainland China and Southeast Asia.

The slowdown follows a period of stronger activity at the end of 2024, when 26 deals were completed in the region, led by seven transactions each in Australia and New Zealand and Southeast Asia.

Despite the softer deal count, Asian insurers continued to pursue overseas expansion. Japan’s Sompo Holdings announced in August its plan to acquire Aspen Insurance Holdings Ltd., extending its push into the US market. 

Meanwhile, South Korea’s DB Insurance agreed to buy US-based The Fortegra Group Inc. for about $1.65b in cash from Tiptree Inc. and Warburg Pincus LLC.

DB Insurance said the acquisition would help it build a stronger presence in the US specialty insurance market and expand into Europe.

The company views Fortegra’s diversified portfolio and stable combined ratio as key advantages amidst the growing US specialty and managing general agent markets.

S&P Global Ratings analyst Chang Sim noted that the acquisition aligns with DB Insurance’s goal of diversifying its portfolio overseas as domestic property and casualty growth slows. 

The contribution from overseas operations could rise to 20% to 25% of total gross premiums written if Fortegra is consolidated, compared with 3% to 5% in 2024.

The rating agency also expects DB Insurance to continue expanding Fortegra’s specialty insurance business after the acquisition is completed.