Sharp downward pressure in transactional risk insurance pricing largely stabilised in the Pacific region last year amid a global market turn, a Marsh report says.

“Overall, the Pacific market may not see further rate decreases, with signs of incremental rather than broad-based premium increases,” it says.

Limits placed in the Pacific region totalled about $US3.1 billion ($4.4 billion) last year, compared with $US3.3 billion ($4.7 billion) a year earlier, and the number of deals rose to 50 from 40, reflecting a significant pick-up in second-half activity.

Private equity accounted for 36% of insured transactions, driven by sponsor exits, while corporate buyers represented a “clear and growing” majority of insured transactions.

Marsh says the Pacific warranty and indemnity (W&I) market entered this year in a position of relative stability and predictability.

“While broader geopolitical and macroeconomic developments may influence deal-making sentiment in certain regions, deal volumes in the Pacific are expected to remain broadly steady,” it says.

“Selective upside” may be driven by improved access to capital, continued inbound investment, and “measured” confidence among strategic buyers and private equity sponsors.

Marsh says globally the market turned higher after three years of declining rates, amid increased merger and acquisition deal volumes and rising claims.

North American primary layer W&I premium rates increased by an average of 16% compared with a 14% decline in 2024, while Asia recorded an 8% gain compared with a 24% drop in 2024.

Global M&A deal value approached $US5 trillion ($7.1 trillion), as values grew faster than the number of transactions.

The Marsh 2025 Global Transactional Risk Insurance Report says there were 70 “mega-deals” worth more than $US10 billion ($14.2 billion), which was up about 80%. The number of transactions exceeding $US1 billion ($1.4 billion) rose 28% to 617.

“Deal activity so far in 2026 is robust, with high demand for transactional risk solutions as the insurance market continues to tighten,” Marsh global transactional risk insurance practice leader Craig Schioppo said.