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flag UK insurance premiums fell in 2025, but declines slowed in Q4, with insurers expecting profits in 2025 and losses in 2026.

flag UK car insurance premiums fell 13% annually to £726 in late 2025, with the decline slowing to 1% in the final quarter—the smallest drop since the trend began in 2024. flag Home insurance premiums dropped 0.8% in Q4 2025, marking the fifth straight quarter of deflation but at a slower pace than earlier in the year. flag Insurers are projected to post underwriting profits in 2025 but may face losses in 2026 due to rising claims costs. flag M&A activity surged in 2025, quadrupling to £19.8 billion, while AIG named Eric Andersen as its new CEO, succeeding Peter Zaffino.

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