Insurance Broker M&A Stabilizes After Surge
•February 16, 2026
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Companies Mentioned
Why It Matters
The steady consolidation provides scale for agencies to invest in technology and talent, while maintaining bargaining power with insurers. Ongoing buyer demand ensures a robust exit market for the millions of small agencies lacking succession options.
Key Takeaways
- •PE-hybrid buyers account for ~70% of deals
- •Deal volume stabilized at 650‑700 annual transactions
- •Top 10 acquirers capture ~50% of market
- •Property/casualty brokers represent 65% of deals
- •Consolidation driven by ~30,000 small agencies
Pulse Analysis
The insurance distribution landscape has long been characterized by a relentless stream of mergers and acquisitions, but the recent data shows a clear transition from the pandemic‑driven boom to a normalized cadence. Since 2008 more than 10,000 deals have been recorded, averaging 557 per year, yet the 2025 total of 691 transactions represents a modest 12% dip from the previous year. Quarterly activity now hovers between 155 and 224 deals, mirroring the patterns seen in 2019 rather than the end‑of‑year spikes that defined 2021‑22. This steadier rhythm signals that the sector has absorbed the earlier surge and is operating at a sustainable equilibrium.
Private‑equity‑backed, or PE‑hybrid, firms remain the engine of consolidation, responsible for roughly 70% of all reported acquisitions over the past decade and 73% of the 2025 volume. Their deep capital pools enable rapid roll‑ups of property‑casualty and employee‑benefits brokers, driving economies of scale and enhancing negotiating leverage with insurers. However, buyer concentration is intensifying; the number of unique acquirers has fallen steadily since 2017, and the top ten players now account for about half of every year’s deals. This concentration raises competitive pressures but also creates clear pathways for smaller agencies seeking exit opportunities.
The outlook suggests that M&A activity will linger near current levels as structural forces persist. More than 30,000 independent agencies generate under $1.25 million annually and lack viable succession plans, feeding a pipeline of potential targets. At the same time, the need for advanced technology, data analytics, and artificial intelligence pushes firms toward larger platforms that can fund such investments. Anticipated recapitalizations, minority stakes, and public offerings will further replenish capital, keeping PE‑hybrid buyers active while inviting selective participation from publicly traded brokers and large private firms. In this environment, scale will be the decisive advantage for future market leaders.
Insurance broker M&A stabilizes after surge
Consolidation in the insurance agency and brokerage sector continues at a steady pace. Since 2008, more than 10,000 M&A transactions have been completed — an average of 557 deals per year, involving nearly 1,300 unique buyers.
While deal activity from 2023 through 2025 declined from the peak years of 2021–2022, the current pace remains above pre-peak levels. Total transactions fell to 691 in 2025, a 12% decline from 2024. Yet over the past 10 years, the average annual number of transactions is 686 if the peak period of 2021-2022 is excluded. These figures reflect normalization rather than contraction.
Reported transactions include U.S. and Canadian property/casualty and employee benefits brokerages, third-party administrators, managing general agents, life insurance intermediaries, wealth management and consulting firms, and other insurance-related businesses. Data is compiled from press releases, trade publications, websites and other public sources; however, many private transactions are not disclosed, meaning actual deal volume is higher than reported.
Stabilization
Over the past 12 quarters, deal volume has remained relatively steady, ranging from 155 to 224 transactions per quarter. In 2025, quarterly activity stayed within a narrow band of 155 to 195 transactions, with no traditional year-end surge. For the second consecutive year, fourth-quarter deal volume declined from the third quarter, a pattern last observed in 2019.
Looking at half-year comparisons, there were 352 transactions in the second half of 2025, 4% more than in the first half but 20% below the 2024 second half and 34% below the prior five-year second-half average. On a full-year basis, 2025 activity was 24% below the five-year average, reinforcing the view that the market has reached a lower but sustainable equilibrium.
Buyers fall into five primary categories:
• PE-hybrid (private equity–backed or externally capitalized firms)
• Publicly traded brokers
• Privately owned firms
• Bank-owned firms
• Other buyers (TPAs, life, wealth, advisory, etc.)
Over the past decade, 731 unique buyers completed acquisitions, including 97 PE-hybrids. This group has driven the majority of consolidation, accounting for 70% of all transactions over the past 10 years and 73% of deals in 2025.
By contrast, privately owned buyers — 479 in total — have consistently represented about 19% of reported transactions. Notably, the total number of unique buyers has declined steadily since 2017, signaling increased concentration among a smaller group of well-capitalized acquirers.
While buyer participation has been broad, consolidation has been led by a small group of firms. Eleven buyers completed at least 200 acquisitions each over the past decade, collectively accounting for 49% of all transactions. At their peak in 2020–2021, these firms represented 55% of annual deal volume; in 2025, their share declined to 45%, reflecting both slower activity and a gradual broadening of the buyer base.
In 2025, the top 10 acquirers accounted for approximately half of all transactions, a consistent pattern year after year. Nine of the top 10 were PE-hybrid buyers, with Leavitt Group the sole privately held exception.
• BroadStreet Partners led the market with 69 acquisitions, down 21 from 2024.
• Hub International followed with 49, down 12.
• Inszone Insurance Services completed 45, down three.
All other firms reported fewer than 40 acquisitions. Among the most active acquirers, Acrisure, Hub and HighStreet Partners remained below their five-year averages, while King Risk Partners, Alkeme, Inszone and Keystone Agency Partners continue to expand steadily in the early years of their business plans.
Property/casualty brokers dominated the sell-side landscape in 2025, representing 455 transactions or 65%. Employee benefits firms followed with 94 transactions, 14%, and those with both P/C and employee benefits were 62 or 9%. Combined, P/C and benefits retail firms accounted for 88% of all reported deals.
Only five firms with revenues exceeding $25 million were sold during the year. Notable among these were the acquisitions of Accession Risk Management and AssuredPartners and the purchases of Woodruff-Sawyer and CAC Group, two of the largest remaining privately held brokerages in North America. Large-scale transactions in 2026 appear likely to continue.
During 2025, there were four recapitalizations or minority investments among PE-backed buyers, and several firms are preparing for recapitalizations or public offerings in 2026 and early 2027. These events will further fuel acquisition capacity and reinforce consolidation trends.
In many respects, 2025 most closely resembles 2019 — with annual deal volume of 650 to 700 and a relatively even quarterly distribution. These two years are the only periods in which the fourth quarter was not the most active, underscoring the industry’s shift toward a more normal transaction cadence.
Outlook
By some estimates, more than 30,000 independent agencies generate less than $1.25 million each in annual revenue and most lack viable internal perpetuation options. This structural reality ensures continued consolidation, with deal activity likely to remain at or near current levels.
Future winners will require scale to recruit talent, deploy advanced technology and artificial intelligence and maintain negotiating leverage with insurers. Investor demand for capital deployment continues to intersect with a large population of agency owners seeking exits — a dynamic that will sustain M&A activity for the foreseeable future.
While private equity-backed buyers will continue to dominate, select public brokers and large private firms also will remain active. At the same time, the industry will regenerate through new agency formations, producer spinouts, lift-outs, and mergers of smaller firms seeking scale.
Through every economic, social and political cycle, the insurance distribution industry has adapted and prospered. There is every reason to expect an active M&A environment for many years ahead.
Steve Germundson, Timothy Cunningham and Daniel Menzer are principals at Optis Partners, a Chicago-based investment banking and financial consulting firm that serves the insurance distribution sector. Mr. Germundson can be reached at [email protected] or 612-718-0598; Mr. Cunningham can be reached at [email protected] or 312-235-0081; and Mr. Menzer can be reached at [email protected] or 630-520-0490.
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