Insurers are increasingly using M&A to reshape themselves by divesting noncore businesses and reinvesting in their core operations. Over the past five years, about 70 percent of insurance deals valued at $1 billion or more were divestitures, reflecting a strategic shift toward focus and simplification. At the same time, interest in insurtech continues to surge, with investment deals rising steadily and total funding exceeding $7 billion in 2020. Private equity is also playing a larger role, more than doubling its investment in insurance over the past decade and accounting for a growing share of deal activity. Together, these trends show insurers redefining their portfolios while embracing technology and new sources of growth.

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