The first three months of 2025 were the slowest quarter for insurance agency mergers and acquisitions since the second quarter 2020, according to investment banking and financial consulting firm OPTIS Partners.
The total number of insurance agency mergers and acquisitions during the first quarter 2025 was down 15% compared to the same period in 2024. OPTIS Partners’ M&A database counted 141 announced insurance agency mergers and acquisitions in Q1, down from 166 reported a year ago.
U.S. agencies accounted for 139 deal while six transactions were for Canadian brokers.
Q1 2025 marked nine consecutive quarters that fell below the long-term trend line, but Steve Germundson, a partner at Chicago-based OPTIS Partners, said the firm expects the pace to pick up in 2025 due to “the large number of active buyers in the market, although current economic uncertainties may cause a bit of a delay.”
Timothy J. Cunningham, managing partner at OPTIS, said several private equity-backed firms are getting ready to go on the market or recapitalize.
“We also expect more large privately owned agencies will be sold this year,” he added. “The sale of San Francisco-based Woodruff-Sawyer, with $268 million in estimated revenues, points to further mega-deals this year.”
Related: Arthur J. Gallagher Completes Buy of Woodruff Sawyer
Although it was involved in fewer deals than the past, Gallagher also announced in December 2024 it had agreed to acquire AssuredPartners for $13.45 billion cash, but the deal remains in review, with regulators asking for more information. Gallagher expects to close in the second half 2025.
Private equity-backed/hybrid brokers continued to dominate deal activity in Q1, with 73% of all transactions, OPTIS said. Among this group, BroadStreet Partners led with 18 deals in Q1, followed by peers World Insurance Associates (10) and Hub International (9).
Privately held brokers completed 25 acquisitions while publicly held brokers reported 13 deals.
Topics Mergers & Acquisitions
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