US insurance broker M&A rises 7% in 5M‘24, shows no signs of slowing
M&A transactions in the US insurance brokerage sector surged by 7% in 2024 compared to the previous year, with no signs of cooling off, according to Marshberry’s May 2024 insurance M&A market update.
“Merger and acquisition (M&A) activity in the insurance brokerage space continues at an active pace,” Marshberry said of the year-to-date tally of 242 deals.
“This pace is expected to continue,” analysts said, citing buyers drawn by the hope of cheaper debt as the FED outlook shifts and sellers calculating against the threat of post-election changes in capital gains taxes.
Year-to-date M&A transactions through May increased by 7% to 242 announced deals compared to 226 in the prior period.
Private capital-backed buyers accounted for 73.1% or 177 of the 242 transactions through May, a level revealing a “substantial” from the 59.3% seen as recently as 2019.
Independent agencies made 35 deals in 2024 (14.5%), down from 15.6% in 2023.
Bank-buyer transactions hit an all-time low, dropping from 18 in 2022 to nine in 2023, with only two acquisitions so far in 2024.
Deal activity from the top ten buyers accounted for 52.1% of all announced transactions through May, with BroadStreet Partners, Inszone Insurance, and Hub International comprising 25.2% of the 242 total. In 2023, the top ten buyers represented 41.9% of transactions, with the top three at 16.2%.
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