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The financial services M&A landscape is set for renewed activity in 2025, with both corporates and private equity showing a stronger appetite for deals. Banks, asset managers, and insurers are turning to M&A to scale up, innovate, and navigate shifting market conditions. Meanwhile, private equity funds remain highly engaged, balancing the need to deploy capital with increasing exit pressure. Regulatory developments, including potential loosening in the US and tightening elsewhere, will further shape deal strategies across the sector. And what about the situation in Switzerland? Find out more in this blog post.
Overall, global financial services deal volumes fell 13% from 2023 to 2024, but deal values surged by 71%, driven by a rise in megadeals – 16 were announced in 2024 compared to just three the previous year. Insurance recorded six megadeals, while asset and wealth management, and banking and capital markets each recorded five. Notable international transactions in 2024 included Capital One’s $35.3bn bid for Discover, Guotai Junan Securities’ $14.5bn merger with Haitong Securities, and BBVA’s $13.4bn merger with Banco Sabadell.
Global M&A trends in financial services
Building on the momentum of 2024, we expect growing optimism among dealmakers for financial services M&A in 2025. While some headwinds have eased, macroeconomic uncertainty, geopolitical tensions and competitive pressures continue to shape the industry. Regulatory changes, particularly in the US, could affect global financial markets, with European regulators potentially under pressure to ease capital requirements amid increased competition.
In this context, M&A remains a key strategic tool for financial services firms to drive growth and adapt to evolving business models. We expect acquisitions to focus on revenue and margin expansion, market access and technological advances, with banks increasingly targeting fintechs to address trends such as embedded finance. At the same time, strategic divestments will help companies optimise their portfolios and reallocate capital to higher-growth areas. We see the following global trends to drive M&A activity in financial services in the coming year(s).
What are the M&A trends in the Swiss financial services industry?
The number of M&A transactions in the Swiss financial services industry in 2024 remained relatively low at a similar level compared to 2023. M&A activity in Switzerland was mainly driven by smaller and mid-size deals in the wealth and asset management sector. From our discussions with clients, we generally see that we are currently in a buyers’ market, where both strategic and financial sponsors are seeking for opportunities across all sectors. Nevertheless, the level of attractive available targets remains subdue. Potential targets include various players that have been on the market for some time - with the ask price exceeding the bids, or sellers that are currently adopting a “wait and see” approach and that would need to be actively persuaded. Hence, we recommend that interested buyers become proactive in their M&A pursuit, rather than wait for an auction process to start.
Please find below an in-depth assessment of what is happening in the various Swiss financial services sectors in Switzerland:
“Financial services players in Switzerland will continue to use M&A to grow, expand their digital capabilities, drive transformation, and strengthen their capital and risk position. To succeed, interested buyers must take a proactive approach rather than relying on auction processes to start.”
Marc Huber, Partner, Deals Financial Services, PwC SwitzerlandAsset and wealth management
Private banking
The Swiss private banking sector saw overall positive results in 2024, with many institutions benefiting from strong stock market performance and higher commission income, which helped offset the decline in interest income. In the medium term, we expect interest income to continue to decline and pressure on margins to increase.
In the Swiss private banking sector, several smaller transactions took place in 2024, underscoring the ongoing consolidation trend. Notable examples include the acquisition of ZKB Österreich by Liechtensteinische Landesbank and the recent asset deal between Vontobel and IHAG. While discussions about potential acquisitions are ongoing, we do not expect a significant wave of consolidation in the short term, but rather a gradual reduction in the number of private banks in the medium term.
Asset management
The asset management sector is under increasing pressure from margin compression and the need for greater operational efficiency both in Switzerland and internationally. The rapid growth of passive strategies continues to challenge active management. Furthermore, the adoption and implementation of artificial intelligence in the investment process value chain is providing a competitive advantage by enabling cost reductions and operational improvements. Growing investor demand for portfolio diversification is driving interest in specialised alternative asset class offerings as a differentiator in a highly competitive market.
In this context, we expect moderate growth in M&A activity as firms seek scale, improved distribution, and cost efficiencies. Recent deals in Switzerland, such as Partners Group’s acquisition of Empira Group and Safra Sarasin’s takeover of MIV Asset Management, highlight the ongoing strategic acquisition of additional capabilities. Various niche players with a focus on specific asset classes are currently exploring partnerships with larger entities to access capital and strengthen distribution channels. To a certain extent, we are also observing transaction activity where insurance companies have sold or are considering selling their asset management businesses (e.g., AXA Investment Managers sale to BNP Paribas, aborted discussions between Allianz Global Investors and Amundi).
External asset management
The external asset management (EAM) sector in Switzerland remains fragmented and is gaining momentum in deal activity and consolidation over the medium term, driven by several factors. These include rising regulatory costs, succession planning challenges, and the need for larger players to accelerate growth or facilitate exits for private equity-backed players. Furthermore, growing private equity interest in the sector is strengthening the consolidation trend, with several firms intending to enter the market with a consolidation playbook through a buy-and-build strategy.
Recent transactions demonstrate the shift towards greater scale, including the acquisition of Huber & Partner Asset Management by SSI Group (majority-owned by Cinerius) and Swiss Life’s acquisition of ZWEI Wealth. Ongoing discussions also target a variety of EAMs across Switzerland and Germany, with both smaller firms and larger entities being positioned as prospects for future transactions. Our proprietary PwC platform, designed exclusively for independent asset managers in Switzerland, has gained strong traction in facilitating M&A opportunities and partnerships.
Transaction Overview
| Acquirer | Acquirer geography
|
Target | Target geography | Announcement date |
Swiss Life Group |
Switzerland | ZWEI Wealth Experts AG |
Switzerland |
12 February 2025 |
SSI Wealth Management AG |
Switzerland | Huber & Partner Vermögensverwaltung AG |
Switzerland |
31 January 2025 |
SIGMA Bank AG |
Liechtenstein | Banque Havilland Liechtenstein (Referral deal) |
Liechtenstein |
08 January 2025 |
BNP Paribas Cardif |
France |
AXA Investment Managers |
France |
21 December 2024 |
Partners Group |
Switzerland | Empira Group |
Switzerland |
03 December 2024 |
J. Safra Sarasin Holding AG |
Switzerland | MIV Asset Management AG |
Switzerland |
02 December 2024 |
Axiom Alternative Investments |
France | Silex Investment Managers SA |
Switzerland |
21 November 2024 |
Vontobel Holding AG |
Switzerland | Privatbank IHAG Zürich AG (Asset deal) |
Switzerland |
19 September 2024 |
Liechtensteinische Landesbank AG |
Liechtenstein |
ZKB Österreich AG |
Austria |
02 July 2024 |
Banking and capital markets
Fuelled by the positive interest rate environment, the profits of Swiss retail banks remained high in 2024. This provided banks with the opportunity to enhance their technological capabilities and to refine and expand their product and service offerings, as expected.
M&A transactions throughout the year reflect these efforts: While there were no major transactions, we have observed various targeted investments by players such as SIX or Hypothekarbank Lenzburg to improve their investment portfolios and/or expand their expertise in core activities.
With the changing interest rate environment, retail banking profits are expected to be lower in 2025 than in previous years. Challenging conditions, particularly on the liability side, may also limit organic growth. Given the relatively high concentration in the retail and capital markets space in Switzerland, we do not expect larger consolidation transactions. However, the pressure to invest in digitalisation or new technologies remains, leading to expectations of strategic transactions to build new collaborations. The EU’s push for a consolidated regulatory tape, could lead to additional cross-border collaborations or acquisitions in the market infrastructure and technology sector.
In addition, UBS is expected to continue the integration of Credit Suisse in 2025, potentially resulting in further transactions, primarily though outside of Switzerland.
Transaction Overview
| Acquirer | Acquirer geography
|
Target | Target geography | Announcement date |
SIX Group AG |
Switzerland | Swiss Fund Data AG |
Switzerland |
17 January 2025 |
SIX Group AG |
Switzerland | Aquis Exchange PLC |
UK |
11 November 2024 |
American Express |
US | Swisscard AECS GmbH (50% stake) |
Switzerland |
21 October 2024 |
Hypothekarbank Lenzburg AG |
Switzerland |
Swiss Bankers Prepaid Services AG |
Switzerland |
05 August 2024 |
Western Union |
US | 14 business locations of Swiss Transfers |
Switzerland |
14 August 2024 |
Swissquote Group Holding Ltd. |
Switzerland |
Optimatrade Investment Partners |
South Africa |
14 March 2024 |
Insurance
In 2024, the global insurance deals market has made a strong comeback, particularly in the second half of the year. This resurgence is driven by the ongoing demand for insurance brokerages to strengthen distribution channels and for life and annuity (L&A) assets. Additionally, there has been a notable revival in property and casualty (P&C) carrier deal activity. In Switzerland, insurers have been actively reshaping their portfolios and positioning themselves for future growth through targeted M&A deals rather than mega-mergers.
Zurich Insurance has successfully closed the acquisition of AIG’s global personal travel business in December 2024. The business will be combined with the Zurich-owned travel insurance provider Cover-More Group. With the completion of the acquisition, Zurich becomes a leading global travel insurer, serving more than 20 million customers and 200 distribution partners around the world.
Swiss Re announced in November 2024 that it had agreed to sell iptiQ's European P&C business to Allianz Direct. The transaction is expected to close in Q2/Q3 2025, subject to customary closing conditions, including regulatory approvals. Baloise announced in October 2024, that it has sold its portfolio holdings in digital insurer FRIDAY to Allianz Direct Versicherungs-AG. The deal is expected to close in mid-2025.
Looking ahead, many industry observers anticipate that Swiss insurers will continue to pursue M&A selectively, focusing on transactions that offer clear strategic benefits, reduce capital strain, or accelerate digital innovation. Well-capitalised Swiss insurers are likely to continue to pursue niche acquisitions that add digital capabilities or expand market reach. At the same time, there may be further sales of legacy or non-core portfolios as insurers look to optimise their balance sheets and maintain a robust capital position. Overall, Swiss insurers remain active dealmakers, but the focus appears to be on disciplined, strategic transactions rather than large-scale acquisitions.
Foreign interest in the Swiss market remains strong, especially in the brokerage space. We have seen a number of European consolidators enter the market and make further bolt-on acquisitions to strengthen their market position.
Howden, the global insurance intermediary group, announced in December 2024 that it had agreed to acquire Perennial SA, a company based near Lausanne and in Fribourg. This acquisition marks Howden’s expansion into French-speaking Switzerland. Miller Insurance services, a UK-based leading independent specialist (re)insurance broker, has acquired a Swiss reinsurance capital advisory business 4809 Brokers AG in Zug. The transaction is part of Miller’s continued international expansion and bolsters its growing reinsurance capabilities. Verlingue, a subsidiary of the Adelaïde Group, one of France’s leading insurance brokers in Europe and globally, announced in November 2024 the acquisition of ProConseils Solutions, a major player in the insurance brokerage market in French-speaking Switzerland.
Transaction Overview
| Acquirer | Acquirer geography
|
Target | Target geography | Announcement date |
Howden Schweiz AG |
Switzerland |
Perennial SA |
Switzerland |
2 December 2024 |
Verlingue |
France |
ProConseils Solutions SA |
Switzerland |
25 November 2024 |
Allianz Direct |
Germany |
iptiQ's European P&C business |
Luxembourg |
5 November 2024 |
Allianz Direct |
Germany |
Baloise’s FRIDAY |
Germany |
29 October 2024 |
Miller Insurance Services |
UK |
4809 Brokers AG |
Switzerland |
1 August 2024 |
Zurich Insurance Group Ltd |
Switzerland |
AIG’s global personal travel insurance and assistance business, including Travel Guard |
US and global |
26 June 2024 |
Fintech
The volume and number of fintech transactions in Switzerland reached an all-time high in 2022, but experienced a decline in 2023 and 2024. This downturn was driven by a general market slowdown, particularly in the crypto sector, resulting in lower levels of VC funding.
However, we see signs of increased deal activity in the coming months: The median deal size increased in 2024, indicating renewed investor interest and a focus on larger, more strategic investments in the fintech sector. Additionally, the Swiss fintech market is poised for increased deal activity in 2025, driven by the resurgence of global crypto markets. After a period of cooling in 2023 and 2024, the market is expected to rebound as investor sentiment improves, fuelled by the expanding adoption of blockchain technology and digital assets. The recent surge in the crypto market has already led to significant funding rounds for Swiss fintechs in the blockchain and crypto sectors, indicating a strong appetite for investment in these areas. Both financial and strategic investors are likely to focus on innovative fintech startups that offer scalable solutions, positioning the Swiss fintech market for a dynamic period of growth and transformation in 2025.
Our expectations are supported by the findings of an ongoing survey conducted with key Swiss fintechs. The results indicate a strong interest in M&A, with most participants exploring M&A opportunities to drive further growth.
M&A industry trends in Switzerland
Learn about the key trends driving M&A activity in Switzerland
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