The Asia-Pacific (APAC) insurance sector witnessed a notable slowdown in mergers and acquisitions (M&A) activity in 2025, with deal volumes dropping to a five-year low, signalling a general deceleration in regional consolidation. Yet, amid this subdued landscape, India and Japan stood out, reporting higher deal counts and relative market stability, according to S&P Global Market Intelligence.
Across the APAC region, a total of 71 insurance M&A deals were concluded in 2025, down sharply from 86 deals in 2024. This decline underscores a reduced appetite for expansion or consolidation in several key markets. Traditional regional leaders such as Australia and New Zealand experienced a significant fall in deal activity, while Southeast Asia also recorded a marked contraction.
Despite these challenges, Japan and India bucked the downward trend. Japan saw 17 deals, the highest in five years, while India’s deal count rose to 13, up from 9 in 2024. In contrast to declining activity in other major APAC markets, these increases highlighted pockets of resilience and helped partially offset the overall regional contraction.
The region’s largest disclosed transaction was Allianz SE’s sale of a 23% stake in Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance, valued at approximately USD 2.78 billion. This move is part of Allianz’s plan to fully exit its Indian joint ventures by mid-2026. India’s total deal value for 2025 reached roughly USD 2.87 billion, the highest in the APAC region.
Cross-border transactions continued to play a critical role. Thailand’s CHUBB Limited acquisition of LMG Insurance exemplified ongoing regional integration, while Japanese investors, such as KKR & Co., entered Japan’s insurance distribution market. Foreign participation also increased in Japan’s brokerage and retail insurance sectors, reflecting rising cross-border interest.
The following table summarises the key APAC insurance M&A activity for 2024–2025:
| Indicator | 2024 | 2025 |
|---|---|---|
| Total APAC insurance M&A deals | 86 | 71 |
| Japan | — | 17 |
| India | — | 13 |
| Australia & New Zealand | 26 | 16 |
| Southeast Asia | 18 | 9 |
| Largest disclosed deal value | — | ~USD 2.78 billion |
While the overall decline points to a cooling in regional activity, the strong performance of Japan and India illustrates a varied landscape. Regulatory reforms, shifts in investor strategy, and growing cross-border interest may pave the way for a more promising M&A environment in 2026, particularly in markets adapting to new capital structures and governance frameworks.