OPTIS Partners Report Q1-2025 Insurance M&A Slowdown
Deal News | May 19, 2025 | EIN
In the first quarter of 2025, the insurance agency mergers and acquisitions landscape experienced a 15% decline, marking it as the slowest quarter since 2020. According to OPTIS Partners, 141 deals were announced, with most activity occurring in the U.S. and a modest number in Canada. The dip below the long-term trend is attributed to economic uncertainties, although a future resurgence is expected due to active buyers. Massachusetts notably outperformed the national average, and private equity-backed firms dominated the market, making up 73% of acquisitions. Property and casualty agencies comprised the majority of sellers, and larger transactions, such as BroadStreet Partners’ 18 deals, were significant. The report anticipates more mega-deals for 2025, highlighted by the potential sale of major firms including the recently announced Alera Group acquisition of Kaplansky Insurance.
Sectors
- Insurance
- Private Equity
Geography
- United States – The majority of the insurance M&A transactions were concentrated in the U.S., with Massachusetts being a key state.
- Canada – There was a minor portion of deals involving Canadian brokerages.
Industry
- Insurance – The article focuses on mergers and acquisitions within the insurance industry, highlighting the shifts in active deals and future outlooks.
- Private Equity – Private equity-backed firms play a significant role in the M&A activities reported, accounting for a major proportion of the deals.
Financials
- 141 – The total number of announced deals in Q1-2025.
- 135 – Number of deals involving U.S.-based agencies.
- 268 million – Estimated revenues for Woodruff-Sawyer.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| OPTIS Partners | Reporting and Analysis | Company | A Chicago-based investment banking and financial consulting firm specializing in the insurance industry. |
| BroadStreet Partners | Leading Buyer | Company | Led the quarter with 18 transactions. |
| World Insurance Associates | Buyer | Company | Completed 10 deals in Q1-2025. |
| Hub International | Buyer | Company | Involved in 9 transactions. |
| Arthur J. Gallagher | Buyer | Company | Announced two significant acquisitions: AssuredPartners and Woodruff-Sawyer. |
| Alera Group | Buyer | Company | Acquired Kaplansky Insurance in Massachusetts. |
| Kaplansky Insurance | Target Company | Company | One of the largest privately-held independent insurance agencies in Massachusetts. |