‘New Normal’ Sets in as Pace of Insurance Agency M&A Becomes Clear

Insurance agency mergers and acquisitions during the second quarter 2025 were up 11% over the prior quarter, but M&A activity for the first half of the year is down 8% compared to last year, according to investment banking and financial consulting firm OPTIS Partners.

OPTIS Partners’ M&A database counted 319 deals in the U.S. and Canada as of June 30—on pace for 758 deals in the latest trailing 12 months. Since the last quarter of 2023, the pace has been 750-800, which is a “new normal,” said Steve Germundson, a partner at OPTIS Partners.

“We expect about 750 to 800 deals annually going forward,” he said. “Larger firms will continue to look for bigger transactions to fuel needed growth, and the number of buyers will shrink as some of yesterday’s active buyers become tomorrow’s sellers.”

U.S. agencies accounted for 305 deals while 14 transactions were for Canadian brokers.

The Chicago-based firm said property/casualty insurance agencies are the primary sellers, accounting for 209 transactions. OPTIS tracks four types of sellers: P/C agencies, agencies offering both P/C and employee benefits, employee benefits agencies, and all other sellers.

In its Q1 report, OPTIS said it expected more large privately owned agencies to be sold in 2025.

Private equity-backed/hybrid brokers continued to dominate deal activity, with 73% of all transactions in the first half of the year.

“Since the start of the pandemic, they’ve done about 70% of the total number of deals in each quarter,” said OPTIS managing partner Timothy J. Cunningham. “They’ve got the money and are willing to spend it for the right acquisition.”

Among this group, BroadStreet Partners led with 39 deals in H1, followed by peers Hub International (27) and Inszone Insurance Services (18).

Privately held brokers completed 62 acquisitions in the first half of 2025 while publicly held brokers reported 19 deals.

Topics Mergers & Acquisitions