M&A Divergence: What 62 Insurance Executives Told Us About the Next 12 Months

Our proprietary survey of 62 senior insurance executives and investors reveals deep divides on where the most attractive M&A opportunities lie in the coming 6–12 months. While three key segments emerged—Digital Insurtech Platforms, Life & Annuity consolidation, and Specialty insurers and MGAs—the data paints a picture of role-based divergence and strategic segmentation, rather than a single thematic wave.

The C-Suite Bets on Digital

Among C-level respondents, 40% identified Digital Insurtech Platforms as the most attractive segment for near-term M&A, the highest preference rate of any group for that category. This suggests that operators, more than owners or partners, are still leaning into tech-forward transformation strategies, despite the post-2021 cooldown in insurtech valuations.

Interestingly, 60% of these same execs also rated Specialty insurers and MGAs highly—pointing to a bifurcated strategy: pursue automation and cost efficiency through digital platforms while diversifying product exposure through specialty roll-ups.

In other words, the C-suite seems less interested in consolidating traditional life insurance and more focused on either modernizing the stack or expanding horizontally.

Partners Are Playing Defense

Contrast that with survey respondents at the Partner level (including PE and VC partners), and a different story emerges. 50% of partners favored Life & Annuity consolidation, the highest single-category preference in the entire survey.

This is the clearest signal of where financial sponsors see value: defensive M&A in capital-intensive, rate-sensitive businesses with legacy customer bases and long-duration cash flows. With rising interest rates and growing L&A liabilities across the industry, consolidation here looks less like a growth play and more like a balance sheet rationalization strategy.

These preferences likely reflect recent PE plays across life carriers, where efficiency and scale have become the dominant post-acquisition theses.

Owners and VPs Stay Split

At the Owner and VP levels, the split was evenly distributed. One-third of respondents in both categories selected each of the three segments as their top M&A focus. For these stakeholders, the message is less about bold directional plays and more about optionality—keeping deal flow open across verticals depending on market windows and valuation resets.

This aligns with the broader capital environment, where valuation gaps persist, due diligence timelines are longer, and execution risk looms large. Middle-tier decision-makers are positioning to pivot quickly across sectors based on timing and execution feasibility rather than conviction alone.

The Big Picture: No Clear Winner

Across all respondents, the aggregate split was:

• 38% — Specialty insurers and MGAs
  
  

• 31% — Digital Insurtech Platforms
  
  

• 31% — Life & Annuity consolidation

That’s not a mandate—it’s a standstill.

Rather than one hot vertical dominating the M&A conversation, the market is moving into a phase of segmented specialization. Sponsors and strategics alike are now forced to choose: modernize infrastructure, bulk up scale, or diversify product lines. But the choice depends heavily on where you sit in the deal stack.

Strategic Implications

For dealmakers, the key insight is that role, not industry, defines perspective. Operators are still chasing transformation. Investors want margin durability. Mid-level leaders are optimizing for optionality.

This isn’t a market driven by a singular M&A thesis—it’s one fragmented by function and risk posture.

If you're a banker, expect varied inbound logic from different buyer types. If you're on the buy-side, consider aligning team structures to the specific vertical you're targeting. And if you're selling? Now’s the time to shape your story for the buyer persona—not just the segment.