Insurance Agency Mergers and Acquisitions Hit Record for First Half

According to OPTIS Partners, deals for property and casualty insurance brokers in the US and Canada increase by 10% in the first half of the year

CHICAGO, IL / ACCESSWIRE / July 8, 2021 / According to OPTIS Partners’ M&A database, 339 insurance agency mergers and acquisitions were announced in the first half of 2021, up from 307 in 2020. It was the highest total recorded for the first half of the year.

The data includes US and Canadian agencies that sell primarily property and casualty insurance, agencies that sell both property and casualty insurance and employee benefits, and those that only sell employee benefits.

“The combination of an increasing number of senior agency owners facing the threat of capital gains tax hikes and an ever-increasing number of insurance agency buyers has fueled the boom over the past six months,” said Steve Germundson, partner at OPTIS Partners , an investment banking and financial advisory firm specializing in the insurance industry.

Activity by type of buyer and seller

The report divides buyers into four groups: private equity-backed / hybrid brokers, private brokers, publicly traded brokers, and everyone else.

Acrisure led all buyers with 31 transactions in the first half of 2021, far more than any other buyer but 21% below their five-year average for that reporting period. Other top buyers were PCF Insurance with 22 deals (of 13 in 2020), AssuredPartners with 21 (of 19), BroadStreet Partners (19, of 30) Hub International rounded off the top 5 with 17 transactions in 2021 (of) . 28).

Of the 10 most active buyers, four closed fewer deals in the first half of 2021 than in 2020 .: BroadStreet and Hub each fell 11; Acrisure closed 8 fewer deals, The Hilb Group had one less Insurance ratio, High Street Partners and Alera each more than doubled the number of closed deals.

Private equity buyers dominate

The private equity-backed / hybrid buyer group completed 66% of all deals in the first half of the year, compared to 68% in the first half of 2020, while acquisitions by listed brokers fell from 10% to 5%. Private companies made profits as this group handled 24% of transactions in the first half of 2021, up from 17% in the same period last year.

‘In a way, the M&A story is well known: more private equity backed buyers with access to large amounts of cheap capital continue to accelerate the pace of M&A and all-time highs. An interesting development is the increase in private agency activities, which account for a quarter of the transactions carried out, ‘said Dan Menzer, partner at OPTIS.

P&C sellers accounted for 188 of the 339 transactions (55%), which is their percentage of the total for recent years.

There is more to come in 2021

“We expect the number of deals to increase by the end of 2021 as more owners want to avoid tax hikes, and we may see an increase in the number of large deals as more buyers need larger deals to shift the growth gauge,” said Tim Cunningham, managing partner. “We also expect a steady increase in transactions between private agencies of all sizes.”

The full report can be read at

OPTIS Partners was regularly selected by S&P Global Market Intelligence as one of the six most active M&A advisory firms for brokers and brokers for 2014 – 2019.

Focussed solely on the insurance distribution market, OPTIS Partners, headquartered in Chicago (, provides merger and acquisition representation for buyers and sellers, including due diligence. It provides estimates of fair value; Review of financial performance, including trend analysis and internal controls; and planning the transfer of ownership and perpetuation.

Contact: Tim Cunningham, OPTIS Partner,, 312-235-0081

Dan Menzer, OPTIS partner,, 630-520-0490

Steve Germundson, OPTIS partner, 612-758-0598

Henry Stimpson, Stimpson Communications, 508-647-0705


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