Insurance Services Market Update – June 2025

Convergence of Asset & Wealth Management and Insurance Services Market Spurs M&A and Financings

The Insurance Services market has recently experienced significant consolidation, largely driven by the heightened convergence of insurance and asset & wealth management offerings and the sector’s ability to weather economic volatility. Although merger and acquisition (M&A) activity in the space has moderated through year-to-date (YTD) 2025, acquirers have continued to consolidate sector participants with robust financial performance. Growth capital deployment in the Insurance Services market has rebounded to date as equity investors have increasingly targeted mature, full-service players with strong upside potential. Healthy sector fundamentals have remained a cornerstone of dealmaking amid a mixed macroeconomic picture and increasingly blurred lines in the broader Financial Services ecosystem.

The Insurance Services and Asset & Wealth management sub-segments are converging within Financial Services spurring capital markets activity for distribution- and services-focused companies as well as carriers.

Khelan DattaniManaging Director, 1060 Capital, LLC

Converged Offerings Reshape the Insurance Services Market

The bundling of insurance and asset & wealth management services has transformed the sector, providing participants with unique avenues for growth. This convergence has been driven by both insurance and asset & wealth management providers seeking to expand offerings, bolster geographic footprint, secure more permanent capital, and increase proximity to clients. The Insurance Services sector’s defensibility against economic headwinds has also brought asset & wealth management firms to the space. Of note, insurers have been able to raise premiums amid the elevated interest rate environment, with total U.S. direct premiums increasing 8% year-over-year (YOY) in 2024, according to the U.S. Department of the Treasury’s latest Insurance Industry report.¹ In addition, the practice of investing insurance liabilities in private credit assets has provided a natural path for convergence. This trend has been amplified by recent gains in the Asset & Wealth Management space. Notably, total assets under management (AUM) in the global Asset & Wealth Management sector rose 12% YOY to a record $128 trillion in 2024, according to Boston Consulting Group.² Market performance drove 70% of the AUM growth experienced in 2024, underscoring a need for alternative and diversified financial products. While select large-scale players in the Insurance Services and Asset & Wealth Management sectors have been able to bridge the gap organically, M&A has proven to be a key strategic option for middle market participants to remain competitive.

Insurance Services Market M&A Moderates, Private Strategics and Sponsors Remain Active

M&A volume in the Insurance Services market has continued to normalize through YTD 2025; however, private strategic and private equity (PE)-backed buyers have remained acquisitive. Sector deal activity has reached 200 transactions announced or completed to date. This marks a modest YOY decline of 8.7%. Comparatively, full-year 2024 saw M&A volume drop 17.2% YOY. Deal flow in the space has been primarily subdued by elevated interest rates, which have hampered transaction financing. Strategic buyers have comprised the majority (56%) of sector transactions to date, led by private strategics (45%) consolidating competitors with robust Retail market exposure. PE firms have maintained their presence in the Insurance Services market, namely through add-on acquisitions. Sponsor add-on activity has accounted for 40% of M&A volume YTD compared to 42.5% in YTD 2024. Market fragmentation and non-discretionary insurance spending by consumers have drawn PE firms to the space.

Purchase multiples in the Insurance Services market have remained healthy as targets have demonstrated strong recurring revenue growth and strong EBITDA margins. From 2022 through YTD 2025, sector M&A multiples have averaged 16.2x EV/EBITDA. This represents an uptick from 2019 through 2021, in which the average stood at 15.2x EV/EBITDA. Robust acquirer appetite and competition, especially from PE firms, in the Insurance Distribution segment have been the primary drivers of M&A multiple expansion in the space. The Insurance Distribution segment has comprised the vast majority (81%) of sector deals to date and has recorded the greatest purchase multiple increase across verticals. Segment M&A multiples from 2022 through YTD 2025 have averaged 16.7x EV/EBITDA compared to 13.1x EV/EBITDA from 2019 through 2021. PE competition in the segment and broader Insurance Services sector is expected to yield a frothy valuation environment throughout 2025.

Insurance and Asset & Wealth Management Firms Pursue Convergence via M&A

The convergence of insurance and asset & wealth management has undoubtedly been reflected in the Insurance Services M&A market, with insurance businesses engaging as both buyers and sellers. On the buy-side, sector participants have namely targeted asset & wealth management firms with low client turnover and diversified wealth and retirement solutions, such as annuities and other protected income products. Of note, insurance broker HUB International has completed three acquisitions of wealth management firms in YTD 2025. This includes Prestige Wealth Partners (May 2025), the Retirement & Private Wealth books of Steven Glasgow and Jordan Sibler (March 2025), and Legacy Planning Partners (January 2025). Terms of the deals were not disclosed. In the company’s latest transaction, HUB International acquired Prestige Wealth Partners to strengthen its Retirement & Private Wealth practice in Florida, improve fiduciary risk policies, and expand upon its ~$178 billion of AUM, according to a press release.³

From a sell-side perspective, asset & wealth management firms have continued to be active acquirers in the Insurance Services market. Through YTD 2025, asset & wealth management buyers have accounted for 15% of total sector transactions. While this marks a slight dip compared to YTD 2024 (17.4%), the composition of asset & wealth management buyers to date has remained elevated in relation to historical levels. Expanding savings and retirement products and health insurance offerings derived from insurance premiums has been the primary consolidation motive. Many wealth management companies have also pursued acquisitions in the space to package insurance, protected income, and retirement products for business owners, high-net-worth (HNW) individuals, and family offices. As a result, asset & wealth management buyers have demonstrated a willingness to pay robust valuations for insurance services businesses. From 2022 through YTD 2025, asset & wealth management firms have paid an average EBITDA multiple of 15.5x for sector targets.

Convergence through M&A has materialized across subsegments of the Insurance Services market, including the Title Insurance sub-vertical. Housing finance providers have increasingly targeted title insurance companies to provide vertically integrated solutions to clients. Notably, Dream Finders Homes (NYSE:DFH) completed its acquisition of Alliant National Title Insurance Company in April 2025 (undisclosed). Dream Finders Homes offers homebuilding and housing finance solutions in the U.S. The acquisition of Alliant is expected to bolster the company’s Financial Services unit with title insurance underwriting capabilities. Several additional notable transactions illustrating the convergence of asset & wealth management and insurance are outlined below.

• JAB Holding to Acquire Prosperity Life Insurance Group (February 2025, Undisclosed) – In February 2025, JAB Holding announced its acquisition of Prosperity Life Insurance Group for an undisclosed sum. JAB is an asset management firm, historically operating in the Public and Private Equity asset classes. Prosperity offers life insurance, supplemental insurance, and annuity products with more than $25 billion of assets, according to a press release.⁴ The acquisition of Prosperity will serve as a platform for JAB in the Insurance Services market, diversifying the company’s asset classes to Fixed Income, Asset-Backed Lending, and Specialty Credit. The transaction exemplifies wealth management firms’ appetite in the Life Insurance subsegment and insurance providers’ pursuit of more permanent capital to back liabilities. “This transaction is a great outcome for all our stakeholders, including policyholders and employees, who will benefit from JAB’s strong commitment to the insurance value chain and a policyholder-centric approach. Backed by JAB’s permanent equity capital base, Prosperity is well-positioned for the next phase in its evolution as we continue to focus on offering innovative, comprehensive insurance solutions and leading customer service for our policyholders,” said Nicholas von Moltke, President & CEO of Prosperity, in the press release.
• Alera Group Acquires Kaplansky Insurance Agency (January 2025, Undisclosed) – Alera Group acquired Kaplansky Insurance Agency in January 2025. Terms of the transaction were not disclosed. Alera provides retirement planning and wealth management services for business owners and HNW individuals and families. Kaplansky offers insurance distribution services with a focus on the Property & Casualty subsegment. Alera has gained more than 100 agents and over 50,000 clients through the acquisition, according to a press release.⁵ Kaplansky executed an aggressive M&A strategy prior the transaction, completing 53 acquisitions over the last 50 years to expand its geographic presence to 18 locations. The deal highlights sector participants’ ability to scale inorganically in preparation for an exit and wealth management companies’ interest in packaging insurance and retirement products for retail clients.
• Newfi Lending Acquires Stake in Dunmor (January 2025, Undisclosed) – In January 2025, Newfi Lending acquired an undisclosed stake in Dunmor. Newfi operates as a subsidiary of Apollo Global Management’s (NYSE:APO) insurance business, Athene, following its acquisition in October 2021 (undisclosed). Dunmor offers mortgage origination services in the U.S. Apollo and Athene are expected to gain forward flow of mortgage loans in the Residential Transition Loan space through the transaction. The deal serves as another example of insurance and asset & wealth management convergence in the Mortgage Lending sub-vertical. “Our team has created a remarkable platform and brand, and we are now set to embark on a new growth phase with Newfi as a key strategic partner together with Apollo’s backing. This equity investment positions us to continue delivering the high level of service our clients expect, complemented by an even stronger commitment to providing innovative funding solutions at highly competitive rates,” said Dunmor Founder and CEO, Franck Ruimy, in a press release.⁶

Equity Investors Increasingly Deploy Capital to Mature Insurance Services Market Participants

Equity financing activity in the Insurance Services market has rebounded through YTD 2025 following two consecutive years of declining deal volume. The number of sector equity financing rounds has risen 17.7% YOY to 73 deals YTD. Equity financing investors have come off the sidelines amid a normalization of startup valuations in the broader Venture Capital (VC) universe, with PE growth and VC investors namely targeting service providers in the Insurance Distribution and Claims Services segments. Total growth capital invested in the space has ballooned to date, rising 206.3% YOY to $5.6 billion. This spike has been primarily driven by two large-scale funding rounds. Even excluding these rounds, equity investors have still increasingly deployed capital to larger, mature sector players to ensure a healthy return on exit. This has been evidenced by the median pre-money valuation for insurance services businesses rising 9.8% YOY to $45 million in YTD 2025.

Sector participants with full-service offerings that can bridge the gap between insurance and asset & wealth management have garnered elevated equity investor interest. This investment thesis has materialized in robust growth funding opportunities for both middle market and large-scale businesses. While middle market companies have comprised the majority (89.5%) of disclosed growth funding rounds to date, select large-scale players have received substantial equity capital injections at premium valuations. Notable large-scale equity financing deals exemplifying investors’ shift to converged offerings are outlined below.

• HUB International Secures $1.6 Billion in Growth Funding (May 2025) – HUB International secured $1.6 billion in growth funding for a post-money valuation of $29 billion (May 2025). The financing round was led by T. Rowe Price Investment Management (Nasdaq:TROW), Alpha Wave Global, and Tamasek. HUB International’s latest post-money valuation has marked the company’s largest enterprise value to date, rising 26.1% compared to 2023 ($23 billion), according to a press release.⁷ The robust valuation reflects the company’s strong revenue gains and its ability to cross-sell insurance brokerage services and asset management solutions as the result of recent acquisitions in the Wealth Management space. “Our ongoing investments in innovation, proprietary products, and strategic M&A, along with our commitment to learning and development, has led to consistent performance and strength in our organic growth and new business generation,” said Marc Cohen, Chairman and CEO of HUB International, in the press release.
• Aspida Holdings Raises $2.3 Billion in Equity Financing (January 2025) – Global asset management firm Ares Management (NYSE:ARES) raised $2.3 billion in equity financing from undisclosed investors in January 2025 to support its subsidiary, Aspida Holdings. Ares also secured $700 million in credit facilities for Aspida, bringing the total funding to $3 billion. Aspida provides life insurance and annuity solutions in the U.S. Since its founding in 2021, Aspida has organically grown its total assets to more than $19 billion, according to a press release.⁸ The deal demonstrates growth investors’ willingness to deploy capital to businesses with converged offerings and annuity products. “Propelled by secular tailwinds, including increased life expectancy, rising health care costs and elevated expenses, retirement planners have turned to annuities to offer enhanced after-tax returns. By pairing Aspida’s spread-based business model and digital platform with AIS’s [Ares Insurance Solutions] leading asset origination and investment capabilities, we believe Aspida is well-positioned to capitalize on these trends and drive continued growth and value creation for its clients and investors,” said David Reilly and Ryan Myrick, Partners and Co-Heads of AIS, in the press release.

Capital markets activity in the Insurance Services sector is expected to remain healthy throughout 2025, supported by a fervent pool of acquirers and growth equity investors. Consolidation tactics from asset & wealth management firms and pure-play insurance services businesses will likely continue to prop up the sector’s M&A market. The convergence of asset & wealth management and insurance has shown no sign of slowing and will be a key element for sector participants to consider when evaluating growth strategies in the long-term.

To discuss the convergence of insurance and asset & wealth management services, provide an update on your business, or learn about 1060 Capital, LLC’s wide range of advisory services and Insurance Services market knowledge, please contact us.

Max Morrissey, Vice President, was the lead Market Intelligence contributor to this article.

Endnotes

1. U.S. Department of the Treasury, “Annual Report of the Insurance Industry,” https://home.treasury.gov/system/files/311/2024-09-30%20Clean%20FIO%20AR%20508_2.pdf, accessed May 29, 2025.

2. Boston Consulting Group, “Global Asset Management Report 2025,” https://web-assets.bcg.com/cc/0a/25876ea740168e908a8652e147d7/2025-gam-report-april-2025.pdf, accessed May 30, 2025.

3. HUB International, “HUB International Enhances Retirement and Wealth Management Services with Acquisition of Prestige Wealth Partners in Florida,” https://www.hubinternational.com/media-center/press-releases/2025/05/hub-international-acquires-prestige-wealth-partners-in-florida/, accessed May 30, 2025.

4. Businesswire, “JAB Holding Company to Acquire Prosperity Life Group,” https://www.businesswire.com/news/home/20250205449524/en/JAB-Holding-Company-to-Acquire-Prosperity-Life-Group, accessed June 2, 2025.

5. Alera Group, “Alera Group Bolsters Property and Casualty Business with Kaplansky Insurance Agency,” https://aleragroup.com/news/alera-group-bolsters-property-and-casualty-business-kaplansky-insurance-agency, accessed June 2, 2025.

6. Newfi Lending, “Newfi Lending and Dunmor Expand Strategic Transaction…,” https://newfi.com/newfi-lending-and-dunmor-expand-strategic-transaction/, accessed June 17, 2025.

7. HUB International, “HUB Secures Significant Minority Investment and Reaches New Milestone with $29 Billion Valuation…,” https://www.hubinternational.com/media-center/press-releases/2025/05/hub-secures-significant-minority-investment-and-reaches-new-milestone/, accessed June 2, 2025.

8. Aspida Holdings, “Ares Management Raises Over $2.3 Billion of Equity Commitments to Support the Long-Term Growth of Aspida,” https://www.aspida.com/about/news/aspidaraises2point3billion, accessed June 3, 2025.