M&A Insurance: Quarterly Market Update – Q1 2026

PE
After a positive end to 2025, activity in the mid-market has been subdued over Q1 of 2026, reflecting broader macro-economic uncertainty. Whilst we were anticipating an increase of pricing, as claims activity remains high, reductions in deal volumes have kept pricing relatively flat and prevented any retrenchment by insurers in the broad coverage positions that have been pushed over the last two to three years.

Energy/Infrastructure
Over a quarter of all transactions signed within HWF related to the energy and infrastructure sectors, predominantly across Europe and the US. We acted on a number of transactions relating to acquisitions of renewables portfolios across France, Germany and Poland, as well as a number of datacentre and digital communication transactions. Rates continue to be extremely competitive, and we continue to develop novel contingent risks for our clients in this space.

Real Estate
We are continuing to see a steady flow of enquiries across all real estate asset classes. This quarter, activity has been particularly strong in operational real estate, most notably hotels and care homes, alongside prime residential assets and central London offices. Insurer appetite for real estate transactions remains robust, with highly competitive pricing and broad coverage available across the market. In parallel, we are working closely with insurers to develop and structure solutions addressing liabilities arising under the Building Safety Act.

Tax
Tax insurance continues to play a central role in managing tax risk and unlocking value. It is used consistently throughout the process, from early transaction planning to live audits and, where necessary, court proceedings. While corporates and investment funds remain the main source of demand, there has also been a growing uptake from individuals and family offices seeking certainty in complex tax matters across various jurisdictions.

Contingent
In Q1, HWF placed a contingent risk policy on a large European infrastructure acquisition, which involved drawing significant capacity from across the contingent insurer market. As the contingent risk market matures, there are increasing opportunities to build higher-limit towers of insurance to address high-value commercial obstacles in M&A processes. It has also been notable that insurers are increasingly willing to consider more innovative policy structures, including co-insurance retentions and extended policy periods.

Claims
Claim notification frequency fell fractionally in Q1. HWF continues to see a high volume of claims on renewables transactions, including in Southern Europe. Following the release of HWF’s annual claims study, there has been significant client interest in more granular data on warranty breach types and other claims metrics, where HWF is able to provide detailed support when structuring policies.

Future considerations
We are pleased to share that we have opened an office in Madrid, led by experienced brokers Ricardo Lecaro Manrique (W&I) and Kai Schmitz (Tax). HWF has long been a trusted advisor to Iberia-based clients on strategic M&A transactions, and establishing a local presence enables deeper relationships, new opportunities, and an even stronger offering for clients across the region.