There were 141 announced insurance agency mergers and acquisitions in the first quarter of 2025, down 15% from 166 in the same period in 2024, according to a report from OPTIS Partners, an investment banking and financial consulting firm specializing in the insurance industry. 

This marks the slowest quarter since the second quarter of 2020 and nine consecutive quarters where M&A activity has fallen below the long-term trend line. In 2024, brokerage mergers and acquisitions were down 10% from 2023. Yet, the number of deals was still above pre-pandemic levels. 

Nearly three-quarters—73%—of all transactions were private-equity backed. Property & casualty agency sales accounted for 68% of transactions in the first quarter.

Despite the lull in deals, experts suggest that deal activity is likely to increase again later this year. “We think the pace will ultimately pick up this year because of the large number of active buyers in the market, although current economic uncertainties may cause a bit of a delay," said Steve Germundson, a partner at OPTIS Partners. 

Further, 2025 should bring more mega-deals, following on the heels of Aon's acquisition of NFP and Marsh McLennan's acquisition of McGriff Insurance Services last year. Several private equity-backed firms are getting ready to put themselves on the market or recapitalize, according to Timothy J. Cunningham, managing partner, OPTIS. 

“We also expect more large privately owned agencies will be sold this year," he added. “The sale of San Francisco-based Woodruff-Sawyer, with $268 million in estimated revenues, points to further mega-deals this year." 

Will Jones is IA editor-in-chief.