Insurance Agency Mergers and Acquisitions Decline Slightly YTD

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Deals for P&C and benefits brokers in United States and Canada Slip 7%, OPTIS Partners reports, as market consolidation continues

MINNEAPOLIS, MN / ACCESS Newswire / October 21, 2025 / There were 520 announced insurance agency mergers and acquisitions in the first three quarters of 2025, down 7% from the same period in 2024, according to OPTIS Partners' M&A database. But the pace picked up in the third quarter, with 188 deals, up 5% from the second quarter.

"Looking ahead to the fourth quarter, we expect activity to be equal to or slightly below Q4 2024, thus continuing the trend of the last three years," said Steve Germundson, a partner at OPTIS Partners, an investment banking and financial consulting firm specializing in the insurance industry.

BroadStreet still top buyer

Among buyers, BroadStreet Partners announced the most transactions YTD with 57, compared to 72 for the first three quarters last year. Hub International followed with 38 purchases.

Those picking up the pace the most over the past 12 months included Alera Group (up 100%), HighStreet Partners (up 75%), and King Risk Partners (up 53%).

Private-equity backed firms lead buyers

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

The private equity-backed/hybrid group of buyers continued to dominate, accounting for 72% of all acquisitions YTD. Besides insurance brokers such as Broadstreet, these buyers now include institutional investors such as family offices, pension funds, and sovereign wealth funds.

"There are interesting dynamics underway. A few new investors are in the market for the first time," said OPTIS managing partner Timothy J. Cunningham. "However, there are fewer active buyers among both private-equity and privately owned categories."

Privately held brokers announced 145 acquisitions YTD, while publicly held brokers reported 54 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 336 transactions, 65% of the total. Benefits agencies sales totaled 75 (14%), and there were 46 sales of P&C/benefits agencies (9%). All other sellers accounted for 63 sales (12 %).

The full report can be read at https://optisins.com/wp/2025/10/q3-2025-ma-report/

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.

Contact: Steve Germundson, OPTIS Partners, [email protected] 612-758-0598

Tim Cunningham, OPTIS Partners, [email protected], 312-543-5425

Dan Menzer, OPTIS Partners, [email protected], 630-520-0490

Henry Stimpson, Stimpson Communications, [email protected]

SOURCE: OPTIS Partners