Improved domestic economic conditions in the second half of the year as a result of lower interest rates and cooling inflation appear to have had a positive impact on M&A activity, despite global uncertainty.
We also stand on the threshold of the Australian Competition and Consumer Commission’s (ACCC) reforms which will affect deals closing or completing on or after 1 January 2026. Deal parties have no doubt been motivated to sign and complete transactions prior to this new merger clearance regime taking effect, providing impetus to M&A activity in Q3 and Q4. Under the new regime, notifiable acquisitions must not complete or take effect until after they have been approved by the ACCC (or the Competition Tribunal, on review).
The W&I insurance markets noticed a strong surge in deal submissions with pressure from deal parties to expedite the underwriting process to meet end of year signing and completion:
- Rates have remained relatively stable and the underwriting approach as well as positions on coverage have remained consistent, since our last market update.
- Public M&A activity displayed strong fortitude in 2025, with a prevalence of schemes of arrangement.1 The application of W&I insurance to some of the significant public M&A transactions is a reminder to explore its utility on these transactions. We reiterate the importance of having these discussions with us at an early stage so that buyers may benefit from a meaningful set of warranties in the Scheme Implementation Deed.
- We saw an increased number of smaller deals (sub $150M), seeking W&I insurance. On these deals, key elements such as fulsome seller disclosures, APAC standard limitations and qualifications, and robust buy-side diligence, lent themselves to being a W&I insurable transaction.
- Deal timelines where prolonged, we understand were caused by protracted negotiations around commercials and sometimes a restructuring exercise.
We await the impact of the more recent inflationary pressures and threats of interest rate hikes on M&A activity in 2026. Although, we understand and expect the growing availability of private capital will continue to drive private and public M&A activity.
1 Your public M&A wrapped: Top trends from 2025 and outlook for 2026
Continue reading our full range of market updates:
- Insurance Market Overview: January 2026
- Claims
- Workers Compensation
- Corporate and Multinational Risk
- Construction, Property and Development
- Financial Lines
