Insurance M&A Down 27% in Q3 2026: OPTIS

Insurance agency mergers & acquisitions in the third quarter of 2026 were down 27% compared with the same period last year.

In its latest report, investment banking and financial consulting firm OPTIS Partners said M&A activity in the U.S. and Canada including 144 in Q3, down from 197 a year ago during the same period.

For the year as of the end of Q3 there have been 439 deals, which is 19% lower than Q1-Q3 2025.

Steve Germundson, a partner at OPTIS, said deal flow in 2026 “is slower than we anticipated,” but conversations and historical trends point to a more active last quarter of the year.

Private-equity-backed/hybrid buyers were involved in 76% of the transactions during Q3 and year-to-date.

“Most of the private equity-backed platforms still want to make acquisitions but are facing pressure to prioritize deleveraging, integration, and exits over sheer volume. This pulls deal counts down even as capital commitments stay high,” added Tim Cunningham, managing partner.

From Q1-Q3, Broadstreet Partners has led with 57 transactions, followed by Inszone Insurance Services with 48 deals. Hub International was next with 22 deals.

OPTIS noted that brokers Gallagher, Brown & Brown, and AON made fewer acquisitions but each have “strategically acquired very large private-equity-backed firms to buy their way into or at least enhance their position in the middle market.”

Sellers are looking at a more competitive market. OPTIS said agencies that have grown mainly from rate increases “will see lower multiples and larger earnouts.”

“Valuations of agencies with producer-led organic growth, strong benefits books or specialty niches should continue to hold steady,” Cunningham said.