According to investment banking and financial consulting firm Optis Partners, the total value of insurance agency mergers and acquisitions as of the end of September was down 10% compared to the same period in 2023.
OPTIS Partners’ M&A database shows 535 insurance agency mergers and acquisitions announced in the nine months to 2024, down from 594 as of September 30 a year ago.
OPTIS said the number of transactions from the first quarter to the third quarter was 13% below the five-year average. However, the number of deals closed in Q3 2024 increased by 14% compared to Q2 to 198 deals.
Partner Steve Garmandson said deal volume has increased for the second consecutive quarter after six consecutive quarters of decline.
“Two quarters do not set the trend, but we believe we are at or near the bottom of a trough in deal flow,” Garmandson added in a statement.
OPTIS said it expects “significant transactions” to occur over the next 12 to 15 months, with recent third-quarter examples including Marsh & McLennan’s $7.75 billion deal for McGriff Insurance Services Inc. highlighted the acquisition of Wallace, Welch & Willingham by IMA Financial.
Broadstreet Partners recorded the most deals year-to-date, with 68 deals, up 50% year-over-year. Hub International and Inzzone & Hub followed with 39 and 38 deals, respectively. Patriot Growth was next with 32 deals, nearly doubling the deal value from the previous year. During the nine months of 2024, 25 of 87 different buyers made their first transaction. About 70 people made fewer than 10 transactions.
Chicago-based OPTIS noted that 73% of all acquisitions in the past 12 months were from private equity-backed/hybrid buyers. Listed brokers and all other trades accounted for 10% of trades.
Topic Mergers and Acquisitions
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