mergers and aquisitions

Despite a 10% dip in insurance merger and acquisition activity, deals remain at pre-pandemic levels.

There were 750 announced insurance agency mergers and acquisitions in 2024, according to a recent report by OPTIS Partners, down from the 833 reported in 2023.

The data showed deals in the second half of 2024 were up 21% over the first half of the year but down 8% over the second half of 2023. Meanwhile, the 199 deals during the fourth quarter of 2024 were 6% lower than the prior quarter and 16% lower than during the same period in 2023.

“The M&A market is in a fairly steady state regarding both the number of transactions in the year and the pace of them throughout the year. This is the second consecutive year in which there was no mad dash to closing a large number of deals at year-end,” said Tim Cunningham, managing partner of OPTIS Partners.

“We think there could be some more large deals in the next 12 to 24 months,” he added. “Nonetheless, the chase for scale continues, and this should buoy seller valuations, especially for the better firms, absent a major change in the underlying economy or the insurance marketplace.”

The three biggest deals in 2024:

  • In April, AON purchased NFP ($2.2 billion in revenue and #13 on the Business Insurance Top 100 in 2022) for $13 billion.
  • In November Marsh McLennan Agencies closed on McGriff Insurance Services ($1.3 billion in revenue and as a stand-alone operation McGriff would have ranked #14 on the Business Insurance list) for $7.75 billion; this deal did not include the CRC wholesale and other business units owned by TIH Insurance Holdings.
  • In December Arthur J. Gallagher announced an agreement to acquire AssuredPartners ($2.9 billion in revenue and #11 on the Business Insurance list) for $13.45 billion, which is expected to close in the first quarter of 2025.
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