Mergers & Acquisitions

Independent insurance agency mergers and acquisitions are stabilizing after years of frenzied activity, but remain above pre-pandemic levels.

The acquisition will enhance Aon’s presence in the large and fast-growing middle-market segment and add new capabilities to its arsenal.

Higher interest rates and uncertain economic conditions continue to limit deals, according to OPTIS Partners.

Even as the fall reflected a return to “normal” after a spike in mergers & acquisitions last year, the third quarter of 2022 was the second-busiest quarter for M&A activity ever.

The increase in agency merger & acquisition rates was caused by investors flush with capital continuing to meet an increasing supply of aging owners taking advantage of all-time high valuations.

The five major deals accounted for 100% of the fourth quarter’s total deal value, with the largest deal being the $3.94 billion acquisition of Metlife Auto & Home Insurance Agency by Zurich Farmer’s Group and Farmer’s Exchanges.