Mergers & Acquisitions

Despite the decline in the number of merger & acquisition transactions in 2023, there was a consistent volume of transactions throughout the year.

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

Insurance agency mergers & acquisitions saw the largest decline through the third quarter ever reported, with 534 in the year so far.

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

The number of mergers & acquisitions announced was the lowest since 2019 and 7% below the five-year average for deals.

Despite various economic and political challenges, the number of mergers & acquisitions deals in 2022 meant it was the second-most active year in history.

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.

There were 427 announced insurance agency mergers and acquisitions during the first half of 2022, up 16% from 369 for the same period in 2021, according to OPTIS Partners.

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.

Record valuations and the looming threat of a sizable increase to capital gains tax have been among the primary factors leading agency owners to sell.