Independent Insurance Agency M&A Settles Into ‘New Normal’

• By: Will Jones
• July 30, 2025

Independent insurance agency mergers and acquisitions slowed slightly in the first half of 2025 with 319 deals announced, according to the latest report from OPTIS Partners, a financial consulting and investment banking firm specializing in the insurance industry. This is an 8% decrease compared to 345 deals during the same period in 2024.

However, momentum picked up in the second quarter of 2025 with 168 transactions recorded, marking an 11% increase over the second quarter of 2024.

The numbers follow a quieter 2024, which saw 750 agency and brokerage M&A deals, down 10% from the 833 reported in 2023. While activity has cooled from the historic high of 1,108 deals in 2021, current numbers remain well above pre-pandemic levels.

“The M&A market is likely at a new normal. We expect about 750 to 800 deals annually going forward,” said Steve Germundson, a partner at OPTIS Partners. “Larger firms will continue to look for bigger transactions to fuel needed growth, and the number of buyers will shrink as some of yesterday’s active buyers become tomorrow’s sellers.”  

Private equity-backed and hybrid firms continued to dominate the buyer landscape, accounting for 73% of all transactions in the first half of 2025. These firms have led the M&A charge since the pandemic began, completing roughly 70% of deals each quarter.

“Private-equity firms continue to invest,” said Timothy J. Cunningham, managing partner, OPTIS Partners. “They’ve got the money and are willing to spend it for the right acquisition.”

Meanwhile, privately held brokers completed 62 deals in the first half of 2025, while publicly traded firms accounted for 19.

Among buyers, BroadStreet Partners led the field with 39 acquisitions, followed by Hub International with 27 and Inszone Insurance Services with 18. Keystone Agency Partners and World Insurance Associates each completed 17 deals.

The OPTIS report covers four types of sellers: property & casualty insurance agencies, agencies offering both p&c and employee benefits, employee benefits agencies, and all other sellers, including life and financial services, consulting and other businesses associated with insurance distribution.

P&C sellers accounted for 209 transactions, which is 65% of the total. Benefits agencies sales totaled 42 (13%), and there were 27 sales of agencies offering both p&c and benefits (8%). All other sellers accounted for 43 sales (13%).

Will Jones is IA editor-in-chief.