Tracker Introduction
Ankura actively monitors insurance asset acquisitions and divestitures across the market to identify emerging themes, track the most active participants, and surface insights for insurers and investors. The tracker is intended to provide a concise view into the United States and Canadian market activity using publicly available information and S&P Capital IQ Pro[1] data of the Q1 2026[2] landscape.
Q1 2026 Overview
Insurance mergers and acquisitions (M&A) activity opened 2026 at a modest pace, as tracked Q1 deal volume came in at 119 deals, 26% below the 12-quarter trailing average of 161 deals per quarter. Buyers remained disciplined and the market continued to recalibrate from prior peak activity. While the slowdown was notable, the broader picture suggests a market that is becoming more selective, with demand still present for quality assets and well-positioned platforms.
Several dynamics are contributing to the softer start to the year, including ongoing macroeconomic uncertainty, inflationary pressure, and geopolitical volatility, which have weighed on market confidence and made valuation discussions more difficult to bridge. At the same time, buyers appear to continue to prioritize quality over volume, focusing on targets with differentiated capabilities and durable performance rather than pursuing acquisitions simply to maintain pace.
Regulatory developments also appear to have contributed to the softer pace of activity. In the U.S., federal antitrust agencies maintained the stricter 2023 merger review guidelines, signaling continued scrutiny of transactions that could meaningfully shift market concentration and prompting acquirers to plan for lengthier reviews. Following standards set by the National Association of Insurance Commissioners (NAIC), state insurance regulators refined risk-based capital requirements and heightened oversight of private equity-owned insurers, which can raise post-deal capital needs and extend change-of-control approvals. In Canada, regulators signaled a stronger stance on mergers, with the Competition Bureau proposing updated guidelines that make it easier to challenge deals based on market concentration and harder for buyers to rely on prior exemptions. At the same time, the Office of the Superintendent of Financial Institutions (OSFI) rolled out updated capital and risk management standards for insurers effective starting Q1 2026.
Notable Deal Spotlight: Enstar Acquires Accident Fund Holdings
One of the quarter’s most notable transactions by size was Enstar’s agreement to acquire 100% equity of Accident Fund Holdings (AF Group) from Blue Cross Blue Shield of Michigan. Announced on Feb. 13, 2026, the deal added a scaled live underwriting platform to Enstar’s portfolio. AF Group operates across all 50 states and reported approximately $3.3 billion of gross written premium in 2025, making the transaction significant for both its strategic fit and size.
AF Group is a longstanding property and casualty platform with workers’ compensation at its core, complemented by specialty and commercial markets capabilities. Following close, the business expects to continue operating largely independently under its current leadership team. The transaction further reflects Enstar’s continued expansion.
Active Players
The market’s most active buyers continue to demonstrate that consolidation remains a defining feature of the insurance landscape, even in a slower quarter. Historically active platforms such as Inszone, BrokerLink, World Insurance Associates, Gallagher, Highstreet, and RSC remain important participants in the ecosystem, although activity levels varied meaningfully during the period. In Q1, 6% of buyers were involved in 21% of all transactions.
Activity was led by Inszone’s 11-deal quarter, with other active acquirers continuing to pursue opportunities at a measured pace. At the same time, several historically prolific buyers such as Acrisure appeared to pull back, reinforcing the view that buyers are being more selective and more disciplined in capital deployment. Much of the market’s activity continues to center on smaller independent brokers being absorbed into larger platforms, driven by rising technology and operating requirements and the advantages of scale in an increasingly competitive environment.
Closing
Although quarterly activity softened, the structural drivers underpinning insurance M&A remain firmly in place. A large population of smaller agencies still faces succession challenges, private equity capital continues to target the sector, and buyers remain interested in quality businesses that can strengthen platform capabilities or expand geographic reach. As a result, the current environment seems to look less like a retreat from M&A and more like a continuation of consolidation under tighter underwriting standards for deals.
Insurance M&A outcomes are often determined not at signing, but in the execution that follows. While strategic rationale may be sound, value leakage frequently occurs during post-merger integration, as organizations underestimate the complexity of combining systems, data, and operating models. Studies suggest up to 32% of insurance deals decrease shareholder value.[5] In this environment, disciplined planning, governance, and execution become critical to realizing intended synergies. Ankura supports the end-to-end acquisition process, from identifying potential targets to due diligence to designing and implementing post-merger integrations to help preserve value and position the combined organization for sustainable growth.
Ankura will continue to monitor developments across the market and provide periodic updates throughout 2026. With many variables at play, we encourage readers to stay tuned for next quarter’s update. For questions regarding the dataset or specific transactions, please contact the Ankura team directly.
References
1. S&P Capital IQ Pro, Ankura Analysis
2. Deals classified by announced date
3. Enstar Group; https://www.enstargroup.com/enstar-announces-acquisition-of-af-group/
4. Federal Reserve, https://www.federalreserve.gov/data/sloos/sloos-202601.htm ‘
5. Insurance Business Magazine, https://www.insurancebusinessmag.com/us/news/mergers-acquisitions/bigger-isnt-better-why-scaledriven-insurance-manda-is-falling-out-of-favor-571998.aspx
© Copyright 2026. The views expressed herein are those of the author(s) and not necessarily the views of Ankura Consulting Group, LLC, its management, its subsidiaries, its affiliates, or its other professionals. Ankura is not a law firm and cannot provide legal advice.
