Private equity firms continue to make up about 70% of deals each quarter. (Credit: Maks_Lab/Adobe Stock)
Insurance agency mergers and acquisitions were down 8% in the first half of the year, compared to the first half of 2024, according to a new report from OPTIS Partners.
There were 319 announced insurance agency M&A deals, down from 345 a year earlier. The second quarter saw more activity, though, with 168 deals — up 11% from the second quarter of 2024.
The first half total is also 16% below the previous 5-year average. The peak period of 2021-2022 saw 1,000-plus deals per year, but activity has settled down post-pandemic. The current deal pace is at 758 in the last trailing 12 months.
“The M&A market is likely at a new normal. We expect about 750 to 800 deals annually going forward,” said Steve Germundson, a partner at OPTIS Partners, in a statement. “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.”
Private equity firms continue to play a large role in M&A. Private equity-backed buyers accounted for 73% of transactions in the first half.
“Private equity firms continue to invest,” said Timothy J. Cunningham, OPTIS managing partner, in a statement. “Since the start of the pandemic, they’ve done about 70% of the total number of deals in each quarter. They’ve got the money and are willing to spend it for the right acquisition.”
Privately owned buyers were responsible for 142 deals in the last 12 months and about 19% of the deals in the first half of 2025.
On a trailing four-quarter basis, the most active buyers have been BroadStreet Partners, which had 80 reported deals, and Hub International, which had 62 reported deals.
Buyers continue to consolidate. In 2020, there were 140 unique buyers, and the 10 most active did 44% of the deals. This year, there are 99 buyers, with the top 10 completing 54% of deals.
P&C sellers accounted for 209 transactions, or 65% of the total. Benefits agencies sales totaled 42 transactions, or 13%, and there were 27 sales of P&C/benefits agencies (8%). All other sellers accounted for 43 sales (13%)
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