Sica Fletcher Index: Agency-Broker M&A Down Slightly in First Half 2024

The 22 acquirers that make up the Sica Fletcher Index were involved in 242 agent-broker deals in the first six months of 2024, totaling $635 million in revenue. That is a 45% drop in revenue from what was acquired during the same period a year ago, said Sica Fletcher, an insurance industry-focused advisory firm. Deal volume was down from 260 acquisitions completed in the first half of 2023.

“Investors continue to be more selective when evaluating acquisition opportunities, with many well-funded buyers in the market still mindful of the high cost of capital,” the firm said in its Q2 2024 Agency & Broker Buyer Index. Sica Fletcher said the index accounts for 70% of deal activity in the agent-broker space during the first half of the year.

As it did in the first quarter, BroadStreet Partners led the SF index during H1 2024 with 46 deals. Hub International and Inszone Insurance were next with 27 and 24 deals, respectively.

Sica Fletcher said private equity-backed buyers accounted for 87% of M&A transactions as of the end of June but “the interest rate environment and strategic acquisitions are causing a slight slowdown for a few platforms.”