OPTIS: 2024 Insurance Agency M&A Down 10%, Highlighted by 3 Large Deals

January 23, 2025

The total number of insurance agency mergers and acquisitions in 2024 was down 10% compared to 2023, according to investment banking and financial consulting firm OPTIS Partners.

OPTIS Partners’ M&A database counted 750 announced insurance agency mergers and acquisitions in 2024, down from 833 reported in 2023.

“There is a general pullback in the pace of acquisition for more than half of the historically most-active buyers,” said Steve Germundson, partner at OPTIS Partners.

The year was highlighted by three giant deals involving three of the world’s largest brokerages. Arthur J. Gallagher made headlines late in the year with its agreement to acquire AssuredPartners for $13.45 billion cash to expand its reach in the U.S. middle-market. The deal is expected to close in first quarter 2025.

In November, Marsh McLennan completed the purchase of McGriff Insurance Services for $7.75 billion. In April, Aon completed a $13 billion acquisition of middle-market P/C broker NFP.

“It won’t be surprising to see other large private equity-backed deals in 2025,” OPTIS said.

Chicago-based OPTIS said, similar to 2023, there was no “mad dash to the finish line” in 2024. Deals in the second half 2024 were up 21% compared to the first six months of the year but the count was down 8% compared to the second half 2023. There were 199 fourth-quarter deals – 16% lower than Q4 2023.

Over the last 10 years, 42% of deals can be attributed to eight buyers (see chart) but most of these buyers have been much less active – with the clear exception of BroadStreet Partners, who led all buyers with 90 deals. Hub International was second with 61 completed transactions.

OPTIS said it expects the trend to continue of a larger amount of sellers being acquired by fewer buyers, but at a slower rate. This is indicative of a consolidating industry, OPTIS said, but inorganic growth requires capital, leading the firm to believe “recapitalizations, large transactions, and perhaps IPOs will be announced in the next 12-24 months.”

OPTIS noted private equity-backed/hybrid buyers had 72% of all 2024 acquisitions.