Why Europe Is Re-emerging as a Strategic Growth Market

For several years, the most active capital markets conversations in (re)insurance centred on the US and Bermuda. However, Europe is now re-emerging as a growth market for MGA activity, cross-border M&A, and third-party capital, and the shift is showing up in real transaction volume rather than just sentiment. That growth is unfolding on two fronts: rising activity in the European MGA market, and a growing pool of institutional capital being allocated to European risk through cat bonds and sidecars.

Momentum in the European MGA Market

Deal-making and active M&A conversations have picked up pace in H1 2026 YTD, and 153 M&A transactions have been announced involving European-headquartered insurance carriers and MGAs, a 5% increase over the same period in 2025.

Howden Capital Markets & Advisory (HCMA)’s own recent activity reflects the trend. The firm announced its first continental European M&A mandate of the year in July, acting as sell-side advisor to Ryan Specialty in selling certain assets of Ryan C&S in Sweden to a subsidiary of Nirvana. HCMA also announced that its German entity had received its investment firm licence, extending the firm's reach into the continental European market. 

Capital values optionality. Companies operating across multiple jurisdictions and platforms are increasingly well positioned to access capacity regardless of where the market sits in its cycle. That is drawing renewed attention to Europe as a domicile for global carriers, alongside the US, Bermuda, and Lloyd's.

European MGA activity is growing for a related reason: there remains a meaningful gap between the number of parties looking to build a platform in Europe (hoping to benefit from a similar growth trajectory to that witnessed in the US MGA market) and the pool of businesses with sufficient scale to be acquired. That imbalance is likely to keep valuations and deal activity elevated for well-positioned targets.

Sébastien Bamsey, Managing Director, Howden Capital Markets & Advisory, commented: “Europe used to be a market people watched from the sidelines. Now we are seeing real deal flow and real investor appetite for European risk. It is becoming a genuine focus for geographic expansion alongside the US and Lloyd's, especially in the MGA space.”

Private Equity is Following the Same Path

A related shift is visible on the private equity side. Interest in asset-light, high-growth platforms has stayed strong, even as some of the 2020-vintage investments have already been exited or move toward exit over the next year or two. Where that capital lands next, whether in Europe or elsewhere, is a live question worth watching alongside the deal activity above.

“PE interest in capital-light businesses with the right growth profile has stayed strong, and we are seeing private deals clear at strong multiples, despite some of the share price moves observed this year amongst publicly listed brokers. We continue to observe strong PE interest in establishing European platforms to capture the expected growth in the European MGA market,” added Leo Beckham, Head of HCMA UK & Europe.

Institutional Capital Flowing into European Risk

Cat bond investors who have concentrated on US risk for years are actively looking to diversify into European and Asian exposure, and that appetite is one of the more interesting shifts in the market this year.

The strength of investor demand is also encouraging a broader pipeline of European sponsors. The trend is no longer confined to established European cat bond issuers or to European windstorm, with German flood as well as Israeli earthquake being covered for the first time on a standalone basis in the past 12 months. The transactions illustrate how competitive ILS terms are helping to bring new European cedants and previously less-developed perils into the capital markets.

Investor appetite for European risk continues to be robust. Co-head of Global ILS and Chair, HCMA Europe, Philipp Kusche commented,

“As more investors look to diversify beyond purely US cat risk, there is room for that relative value picture to develop in Europe over time and while the traditional reinsurance market has become increasingly competitive – versus cat bond pricing – cat bonds continue to bring value to our clients by providing collateralised multi-year capacity with an increasing range of perils beyond European windstorm. Next to cat bonds we are also seeing an increasing number of European-based cedants explore risk sharing vehicles supported by institutional investors.”

None of this displaces the US, Bermuda, or Lloyd's as capital centres. It adds a third dimension to how sponsors and investors think about platform diversification, at a moment when it is becoming one of the more important capital strategy decisions a business can make.