APAC Insurance M&A Slows, India and Japan Surge

APAC Insurance M&A Activity Hits Five-Year Low

The Asia-Pacific (APAC) insurance sector experienced a pronounced slowdown in mergers and acquisitions (M&A) in 2025, with deal activity falling to its lowest level in five years. According to S&P Global Market Intelligence, the total number of insurance M&A transactions across the region dropped to 71, down from 86 in 2024, reflecting reduced appetite for consolidation and expansion in several major markets.

Australia and New Zealand, traditionally among the most active markets in APAC, saw a sharp decline in deals, while Southeast Asia also experienced a substantial drop, signalling widespread caution among investors.

Yet, amid this overall contraction, India and Japan emerged as notable exceptions. Japan recorded 17 transactions, marking its highest annual deal count in half a decade, while India increased its activity to 13 deals, up from nine in 2024. These gains highlight pockets of resilience and suggest that strategic opportunities continue to attract investment despite broader market uncertainty.

The largest disclosed transaction in 2025 was Allianz SE’s sale of its 23 per cent stakes in both Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance for approximately $2.78 billion. This divestment forms part of Allianz’s plan to fully exit its Indian joint ventures by mid-2026. India also led the region in overall deal value for the year, with total disclosed transactions amounting to around $2.87 billion.

Cross-border investment remained a key driver in shaping the regional insurance landscape. Examples include Chubb Ltd.’s acquisition of Thailand-based LMG Insurance and increased participation by Japanese investors, such as KKR & Co., in domestic insurance distribution, brokerage, and retail segments.

While the broader APAC M&A market outside insurance shows mixed results—some surveys indicate modest rises in overall deal-making—the insurance sector’s slowdown underscores the differentiated nature of regional dynamics. Analysts suggest that regulatory reforms, evolving investor strategies, and sustained cross-border interest may foster a more positive outlook for 2026, particularly in markets adapting to new capital and governance frameworks.

APAC Insurance M&A Activity, 2024–2025

The 2025 data paints a nuanced picture: while overall APAC insurance M&A contracted, Japan and India stand out as resilient markets, signalling targeted opportunities for investors navigating a shifting regional landscape.