Beyond borders: Why UK brokers are expanding into Europe

The word ‘consolidation’ has recently been synonymous with the UK broking market – but after years of intense activity, the number of prime acquisition targets left in this sector has seemingly started to dry up.

For example, MarshBerry’s Insurance Distribution in Europe 2025 Market Report, published in March 2025, found that the number of independent broking firms in the UK has nearly halved over the last 15 years.

This means that many of the UK’s consolidators are having to look overseas in their hunt for acquisitive growth, with Howden Group head of M&A Peter Blanc citing European markets as an obvious next step for the UK’s acquisitors.

“Because people like me have been quite busy for quite a few years, there aren’t that many medium-sized brokers left,” he told Insurance Times.

“There are still plenty of small, specialist, niche brokers – and I absolutely love those, we buy lots of those every year – but there aren’t many left in that mid-market.

“So, we obviously have to go where there are opportunities and, at the moment, it’s not unfair to say there are more opportunities across Europe than there are just in the UK.”

This trend is echoed by several UK-based consolidators. PIB Group, for example, is among the intermediaries actively building out its European presence. Last year alone the broker expanded into France, Portugal and Romania – it now operates in 11 markets across the UK and Europe.

“There is no doubt [that] broking and intermediary groups, like us, will look towards Europe as a growth market for the remainder of this year and into the future,” said Onno Janssen, chief executive at PIB Group Europe.

Much of the broking market’s current M&A activity is being driven by private equity (PE). According to MarshBerry’s aforementioned report, PE and PE-backed buyers were responsible for more than 60% of broker M&A transactions across the continent over the past three years.

And with the UK market becoming increasingly saturated with consolidators, this capital is now flowing to Europe. 

In its Insurance Distribution Market Report UK, published on 4 March 2025, MarshBerry explained: “PE capital has helped fuel industry consolidation – but now sees reduced opportunity and is moving elsewhere.”

For UK firms backed by private equity, building a strong European presence is becoming more than just a growth lever – it may be essential to their existence as an independent firm.

MarshBerry continued: “PE-backed consolidators, without demonstrable success in Europe, will themselves be consolidated, most likely by one of the Big Six – Aon, Ardonagh, Gallagher, Howden, Marsh, Willis – or by US brokers looking to enter the UK.”

Location, location, location

As for where in Europe brokers are concentrating their acquisition efforts, Germany has emerged as one of the most active and attractive markets for acquisitive UK brokers and, as such, it is now experiencing a rapid increase in M&A activity.

MarshBerry attributed this attention on Germany to “its large proportion of independent brokers and expanding opportunities for buy and build strategies”.

This view is echoed by Blanc: “Germany is probably the exception where there are lots of mid-market brokers still. We see Germany as a really important market.”

PIB Group and Howden are already active in the German market, with both firms making acquisitions in the country last year. For example, PIB Group secured Munich-based Contego Broker in December 2024, while Howden completed its merger with Reich Insurance Group in November.

Market commentators predict more Germany focused M&A activity from UK brokers in 2025, particularly from firms with existing infrastructure on the ground.

But Europe is far from uniform and brokers looking to expand overseas must grapple with the nuances of each national market. While Germany is seen as open and increasingly consolidated, France remains more difficult for foreign firms to penetrate.

“France is known as a relatively closed insurance market, dominated by strong national players with long histories, making it challenging for international firms to establish a significant presence,” MarshBerry explained within its Insurance Distribution in Europe 2025 Market Report.

Nevertheless, firms like PIB Group and Howden have begun to gain ground, with both groups acquiring French brokers in the past year. For example, Howden bought Paris-based AGEO last July and PIB Group purchased BEA Group in November 2024.

For firms already active on the continent, expansion is as much about deepening existing operations as it is about entering new countries.

According to Janssen, PIB Group is focused on building scale in territories like the Netherlands, Poland and Germany, while keeping an eye on growth opportunities in the Nordics, Greece and central and eastern Europe.

“We see plenty of potential within the European market, especially in territories where the insurance sector has yet to meet maturity, and countries like Germany and Italy where the market is still quite fragmented and further consolidation is ongoing,” he said.

Boots on the ground

However, with each country operating under its own regulatory regime and market structure, a one-size-fits-all M&A and integration strategy will not work. This means that local knowledge and autonomy are critical for success – a fact recognised by both Howden and PIB Group.

“What Howden has done really successfully is to back entrepreneurial businesses in lots of countries and then [given] them the freedom to go and grow in those territories,” Blanc explained.

“Every country is different. What you need is people on the ground in each country that know how to take advantage of opportunity.”

PIB Group follows a similar approach. “While some European markets have similarities, the truth is that each country has its own nuances that need to be fully understood,” Janssen agreed.

“These differences can be related to market access, local regulation, operational differences or cultural differences.

“This is why we take a ‘boots on the ground’ approach to each individual market we operate in. This ensures local customs and operations are best understood and responded to, so we can truly offer our clients the best service.”

For brokers that get European M&A right, the potential rewards are significant.

As consolidation continues at pace across Europe, UK firms that move early – and move smartly – could secure a significant foothold in what is fast becoming the next major battleground for ongoing growth.