Insurance law firm adds to rapid growth of sector

Annual results for one of the fastest growing firms in the UK reflect two of the big trends in the legal sector: the buoyancy of the insurance market and the influence of private equity cash.

Keoghs’ financial report for the year to May 2025, published this month, shows that pre-tax profit increased 23% to £51.5m, on  turnover up by 14% to £147m. Just 10 years ago, turnover was £54m with pre-tax profits recorded at £10.3m.

Headcount has grown by more than 80% in the past decade to more than 2,100 professionals across UK and Ireland, with partner numbers up 150% to 176.

In the directors' report attached, Keoghs said the business aims to be the ‘best in class’ specialist provider of dispute resolution services for the insurance industry.

‘We continue to be well placed to capitalise on the opportunities in the market place as the firm’s competitive advantage is focused on combining low-cost workflow processing with operational and process excellence, alongside deep technical expertise in relation to more complex matters.’

Keoghs has been part of the private equity-backed professional services group Davies since 2020. It became one of the first law firms to take private equity funding, in 2012.

Research published last year found that 25% of all legal mergers and acquisitions last year involved either investments by private equity businesses or private equity-backed law firms. This was up from 20% in 2023. Nearly £1.2bn had been pumped into the legal sector in the UK by private equity in the previous five years.

One of the key changes has been in private equity driving the expansion of professional services groups through bolt-on mergers.

The Keoghs results also reflect a wider trend of firms in the insurance law sector reporting healthy financial performance.

DAC Beachcroft said last month that in the year to April 2026 its pre-tax profits were up by 20% to £91m, on turnover increasing by 10% to £385m.

Meanwhile, revenue at Kennedys in 2025/26 rose by 9% to £457m, marking a 12^th consecutive year of growth.

The market has consolidated significantly this century, with a diminishing number of specialist firms representing insurers in disputes and growing as a result. This growth has been accelerated by the adoption of AI not just for volume work but also in specialist and more complex claims.

The breadth of claims has also widened in line with the changing society. Last November, DAC Beachcroft highlighted that potential opportunity from environmental and social trends, producing more work related to PFAS 'forever chemicals', climate change litigation, ultra-processed food and weight loss drug litigation.

Kennedys gave a presentation to the market earlier this year highlighting similar developments in property claims, including wildfire exposure, fraud investigations and coverage disputes.