A Slight Dip in Insurance Mergers & Acquisitions for 1H-2025

Deals for insurance firms in United States and Canada dip 8% in first half, OPTIS Partners reports

MINNEAPOLIS — There were 319 announced insurance agency mergers and acquisitions in the first half of 2025, down 8% from 345 in the same period in 2024, according to OPTIS Partners’ M&A database. The pace picked up in the second quarter, with 168 deals, up 11% from a year ago.

American sellers accounted for 305 deals, while Canadian brokers accounted for 14 transactions.

“The M&A market is likely at a new normal. We expect about 750 to 800 deals annually going forward,” said Steve Germundson, a partner at OPTIS Partners, an investment banking and financial consulting firm specializing in the insurance industry. “Larger firms will continue to look for bigger transactions to fuel needed growth, and the number of buyers will shrink as some of yesterday’s active buyers become tomorrow’s sellers.”   

BroadStreet Leads Buyers

Among buyers, BroadStreet Partners recorded the most transactions in the first half of 2025 with 39. Hub and Inszone followed with 27 and 18 deals, respectively, while Keystone Agency Partners and World Insurance Associates each announced 17 purchases.

The top 11 buyers (top 10 and ties) accounted for 187 deals or 59% of the total. All were private equity-backed firms except Leavitt Group (private), Arthur J. Gallagher (publicly traded), and Heffernan Insurance Brokers (privately held)

Private-equity firms dominate buyers

OPTIS Partners tracks buyers by four groups: private equity-backed/hybrid brokers, privately held brokers, publicly held brokers, and all others.

The private equity-backed/hybrid group of buyers (32 firms) continued to dominate deal activity in the first half, accounting for 73% of all transactions.

“Private-equity firms continue to invest,” said OPTIS managing partner Timothy J. Cunningham. “Since the start of the pandemic, they’ve done about 70% of the total number of deals in each quarter. They’ve got the money and are willing to spend it for the right acquisition.”

Privately held brokers completed 62 acquisitions in the first half of 2025 while publicly held brokers reported 19 deals.

P&C agencies are primary sellers

The OPTIS report covers four types of sellers: property-and-casualty insurance agencies, agencies offering both P&C and employee benefits, employee benefits agencies, and all other sellers (life/financial services, consulting, and other businesses associated with insurance distribution).

P&C sellers accounted for 209 transactions (65% of the total). Benefits agencies sales totaled 42 (13%), and there were 27 sales of P&C/benefits agencies (8%). All other sellers accounted for 43 sales (13 %).

The full report can be read at or by clicking the image below:

About OPTIS Partners

Focused exclusively on the insurance-distribution marketplace, Minneapolis-based OPTIS Partners (www.optisins.com) offers merger & acquisition representation for buyers and sellers, including due-diligence reviews. It provides appraisals of fair market value; financial-performance review, including trend analysis and internal controls; and ownership transition and perpetuation planning.

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