Total value of M&A activity in UK financial services doubles

Written by Adam Cadle

07/01/2026

The total value of M&A activity in UK financial services doubled in 2025 from £19.7bn in 2024 to £38bn, driven by a notable rise in deals over £1bn, according to EY.

Its latest financial services M&A analysis revealed that UK banks, insurers and asset managers publicly disclosed 337 deals between January and the end of December 2025, down from the record high of 378 in 2024.

Over the same time period, the total value of announced or completed transactions rose by 93%, with 12 transactions exceeding £1bn, and high-value activity across all sectors.

For UK insurance specifically, deals fell from 186 in 2024 to 145 in 2025, while deal value grew significantly from £4.6bn to £19.8bn, driven by seven transactions above £1bn.

“Robust M&A activity in the UK is expected to continue in 2026,” Damian Hourquebie, UK financial services strategy and transactions leader at EY, said.

“Assuming inflation and interest rates continue to stabilise, investor confidence will likely drive ongoing transaction activity. UK businesses will increasingly target significant deals that aim to bolster their long-term growth goals, optimise costs, and drive innovation in a competitive market.”

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