Credit rating agency Fitch Ratings expects consolidation in the global life insurance sector to continue, although the pace and structure of transactions will vary by region, according to the Reinsurance News website
Fitch Ratings explains that the flow of deals is driven by insurers’ ongoing efforts to strengthen balance sheets, improve operational efficiency, and allocate capital to acquisitions that can enhance long-term value.
“Although geopolitical tensions, fluctuations in economic conditions, financing constraints, and heightened regulatory oversight in certain markets may affect pricing and transaction timelines, Fitch Ratings does not expect these factors to significantly disrupt the broad trend toward consolidation,” the report notes.
It is also noted that, according to Fitch, consolidation structures vary significantly across different jurisdictions. In Germany, activity is primarily focused on the acquisition of closed or legacy portfolios, with a small number of specialized run-off platforms actively operating, and approximately €25 billion in portfolios expected to become available for transfer in 2026.
In the UK, the market is increasingly shifting toward pension risk transfer (PRT), where defined-benefit pension plan liabilities and related assets are transferred to insurers. Fitch expects the volume of PRTs in the UK to grow to £45–50 billion in 2026, up from £38 billion in 2025, driven by sustained demand from pension schemes seeking to reduce risks, and insurers’ interest in scaling up these operations.
A similar picture is observed in the Netherlands, where approximately €10 billion in pension liabilities is expected to be transferred in 2026. In contrast, in markets such as France and several other European jurisdictions, PRT activity is limited due to structural differences in pension systems.
In the U.S., consolidation is characterized by a combination of reinsurance with intensive asset utilization and active mergers and acquisitions, including block transfers and full-scale company sales, whereas in the Asia-Pacific region, consolidation tends to be more selective, and Japan lacks a national PRT system.
Fitch notes that its assessment of insurers involved in consolidation takes into account how they manage growth while controlling the impact of investment, counterparty, regulatory, management, and operational risks.
