Brokerage M&A deals fall in first quarter
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Mergers and acquisitions involving U.S. and Canadian insurance agents and brokers fell to their lowest level since 2016 in the first quarter of 2022, with 123 announced deals among traditional agents and brokers, according to a report by Optis Partners LLC.
Deals were down 28.9% compared with the same period last year, according to the report the Chicago-based investment banking and financial consultancy released Monday.
“Many agency owners who had been thinking about selling over the last few years were pushed to act by record valuations and concern over tax increases. While valuations remain very high, the concern over tax increases has abated,” said Timothy J. Cunningham, managing partner of Optis, in a statement.
Brokers and agents have broadened the scope of their acquisition targets, and going forward Optis will include life insurance, wealth management and other businesses associated with insurance distribution in their tally of deals, the company said. Including the new categories, there were 149 deals in the first quarter.
The most active acquirer in the first quarter was Grand Rapids, Michigan-based Acrisure LLC with 14 deals announced, followed by Hub International Ltd. with 12, and Schaumburg, Illinois-based Inszone Insurance Services LLC with 10.
