Germany is expected to remain the main source of life insurance closed book consolidation in Europe, according to Fitch Ratings, with about €25bn of books to be available for transfer in 2026.
UK activity has shifted towards pension risk transfers (PRT), Fitch added, with strong supply from sponsors expected to lift volumes to £45bn-£50bn in 2026 from £38bn in 2025. The Netherlands is witnessing a similar trend, with around €10bn of PRT expected in 2026.
In the US, life insurance consolidation is continuing through asset-intensive reinsurance, with alternative investment managers playing a significant role. The market also remains active for mergers and acquisitions, including block transactions and full-entity sales. In Japan, asset-intensive reinsurance has expanded as insurers seek to improve their capital efficiency. At the same time, Japanese life groups are also participating as acquirers or strategic investors in global risk-transfer platforms.
“Regulation will continue shaping deal viability, risk appetite and funding choices, even if it does not materially dampen transaction volumes,” Fitch stated.
“Notably, the UK Prudential Regulation Authority’s (PRA) proposed capital requirement increases for funded reinsurance from October 2026 could reduce PRT writers' use of these structures and weaken reinsurer appetite, potentially pushing some towards direct acquisitions or partnerships instead.”
