1. Insurance Sector Megadeal: Brown & Brown Acquires Accession Risk
In early June, insurance broker Brown & Brown announced a $9.83 billion acquisition of Accession Risk Management, parent to Risk Strategies and One80 Intermediaries. The deal, funded partly by a $4 billion share offering, positions Brown & Brown to create a specialty distribution powerhouse by integrating Accession’s wholesale units and programs brokerage into its existing segment. The acquisition is expected to close in Q3 2025, following industry advisors including BofA Securities, JPMorgan, and Skadden theaustralian.com.au+4voguebusiness.com+4axios.com+4reuters.com.
Why it matters: Amid a wave of consolidation in U.S. insurance—including Aon’s $13 billion buyout of NFP—Brown & Brown’s bold move highlights a sector eager for scale in a rising rate and inflation landscape. The deal also signals investor confidence in niche specialty coverage despite broader economic uncertainty.
2. US M&A Rebound: Value Surges Amid Trade Calm
May 2025 witnessed a significant rebound in U.S. mergers and acquisitions. According to EY-Parthenon, the total value of deals worth over $100 million jumped 39% month-over-month and rose 68% compared to May 2024. Deal volume was driven by large transactions across media, entertainment, energy, chemicals, and technology, totaling roughly $202 billion ey.com.
Analysts suggest several factors behind this resurgence:
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Easing trade tensions, with new agreements between the U.S., U.K., and China.
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Anticipated interest rate cuts by the Fed, likely two in late 2025 .
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Continuing corporate appetite for growth through inorganic expansion—57% of CEOs view M&A as a key tool for transformation.
3. Global Economic Outlook: Slowing but Stable Growth
Despite upbeat deal metrics, macroeconomic data suggests a tempered outlook. S&P Global has raised its growth forecasts for 2025–26, but remains cautious: GDP is expected to stay below potential, with signs of slowing business momentum theaustralian.com.au+6ey.com+6reuters.com+6. Meanwhile, OECD projections paint a subdued global landscape with growth easing to 2.9% in 2025–26, down from 3.3% in 2024 economist.com+4oecd.org+4theguardian.com+4.
Backdrop: Persistent tariff uncertainties—especially U.S.–China dynamics—and tepid confidence continue to weigh on business investment and supply chains, per the Bank of England governor and international institutions .
What This All Means for Business Leaders
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Sector momentum matters: With juicy valuations and roll-up potential, specialty industries (insurance, tech, energy) are attracting aggressive deal-making, even when macro risks lurk.
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Economic headwinds persist: Slower global growth paired with policy uncertainty suggests that activation of M&A engines may stall if sentiment cools.
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Strategic flexibility is key: As deal volumes rise but valuations remain unpredictable, companies face widening valuation gaps. Those with disciplined pricing and agility will likely gain competitive advantage.
Key Takeaways
| Theme | Summary |
|---|---|
| Insurance consolidation | Brown & Brown’s acquisition marks major market realignment and scale positioning. |
| Deal flow rebound | U.S. large-deal values surged in May, driven by cross-sector megadeals. |
| Macro caution | Optimism on trade and policy is balanced by slowing global growth and persistent uncertainty. |
