Mergers and acquisitions (M&As) have become a strategic response to regulatory pressures and economic challenges in Zimbabwe’s insurance sector. This study investigates the effects of M&As on financial performance, focusing on profitability, solvency, and market share during 2020–2024. Against the backdrop of economic challenges and regulatory reforms, the research examines whether M&As have achieved their intended objectives of enhancing financial stability and market competitiveness. A mixed-methods approach was employed. Quantitative analysis was conducted on financial statements, comparing pre- and post-M&A performance metrics, while qualitative data were collected through key informant interviews with executives and regulators. The findings indicate that M&As significantly improved solvency ratios (average increase of 25%), while short-term profitability declined by 15–20% due to integration costs. Market concentration increased, with the top five firms controlling 65% of market share, and cultural integration emerged as the most significant post-merger challenge. The study recommends that the Insurance and Pensions Commission (IPEC) develop M&A guidelines focusing on policyholder protection, that firms allocate resources for integration costs, that acquiring firms conduct thorough cultural due diligence, and that the government provide tax incentives for mergers that enhance sector stability. This research contributes to the understanding of corporate restructuring in emerging markets and provides actionable insights for practitioners and policymakers in the insurance sector.