Independent Insurance Agency M&A Activity Slows Through Third Quarter 

• By: Olivia Overman
• October 27, 2025

Independent insurance agency mergers and acquisitions slowed in the first three quarters of 2025, with 520 deals announced so far this year, according to the latest report from OPTIS Partners, a financial consulting and investment banking firm specializing in the insurance industry. This is a 7% decrease from the same period in 2024.

However, the pace of M&A activity picked up in the third quarter with 188 deals announced, a 5% increase from the second quarter, the report said.

Among buyers, BroadStreet Partners continued to lead with 57 transactions year to date, followed by Hub International with 38 transactions. Three buyers continued to increase the pace of acquisitions over the past 12 months: Alera Group, up 100%; HighStreet Partners, up 75%; and King Risk Partners, up 53%.

OPTIS tracks buyers by four groups: private equity (PE)-backed and hybrid buyers, privately held brokers, publicly held brokers, and all others. Through the third quarter, PE-backed and hybrid firms continued to lead buyers, accounting for 72% of all acquisitions year to date.

In addition to insurance brokers, these buyers now include institutional investors such as family offices, pension funds and sovereign wealth funds.

Privately held brokers announced 145 acquisitions through the third quarter, while publicly held brokers reported 54 deals.

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

Among sellers, property & casualty insurance agencies accounted for 336 transactions, 65% of the total. Benefits agencies’ sales totaled 75 (14%), and there were 46 sales of P&C and benefits agencies (9%). All other sellers accounted for 63 sales (12%).

“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.

Olivia Overman is IA content editor.