OPTIS Partners Reports Dip in Insurance M&A Activity
Deal News | Jan 27, 2025 | EIN
The U.S. insurance agency mergers and acquisitions (M&A) scene experienced a notable decline in 2024, contracting by 10% compared to 2023 as reported in OPTIS Partners’ quarterly report. With 750 deals recorded, the market saw a return to pre-boom levels due to several factors including a pullback by traditionally active buyers. However, some firms like Broadstreet Partners and ALKEME increased their pace of acquisitions. The year was marked by three significant acquisitions: AON's $13 billion purchase of NFP, Marsh McLennan's $7.75 billion acquisition of McGriff Insurance Services, and Arthur J. Gallagher's $13.45 billion acquisition of AssuredPartners, expected to finalize in early 2025. Private equity-backed brokers remained dominant, while the diversity of active buyers decreased significantly with private equity-backed buyers executing 72% of the transactions. The report also highlighted varying buyer strategies and profiles revealing that the foray into mega-deals is expected to continue, with the market's outlook remaining cautiously optimistic.
Sectors
- Insurance
- Private Equity
- Financial Advisory
Geography
- United States – The article discusses mergers and acquisitions within the US insurance industry.
- Canada – Canadian insurance brokers are also part of the M&A activities discussed in the article.
Industry
- Insurance – The article focuses on the mergers and acquisitions within the insurance industry, specifically relating to property, casualty, and benefits brokers in the US and Canada.
- Private Equity – The article discusses the role of private equity-backed brokers, representing a significant portion of the transactions in the insurance sector.
- Financial Advisory – OPTIS Partners is highlighted as a financial consulting firm providing insights into the M&A activities within the insurance industry.
Financials
- $13 billion – Value of the deal in which AON acquired NFP.
- $7.75 billion – Value of Marsh McLennan's acquisition of McGriff Insurance Services.
- $13.45 billion – Value of Arthur J. Gallagher's acquisition of AssuredPartners, expected to finalize in early 2025.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| OPTIS Partners | Source/Analyst | Companies | An investment banking and financial consulting firm specializing in the insurance industry, providing data and analysis on M&A activities. |
| Broadstreet Partners | Active Buyer | Companies | A firm noted for increased acquisition activity in 2024. |
| ALKEME | Active Buyer | Companies | Another firm that intensified acquisition efforts despite a general market slowdown. |
| AON | Bidding Company | Companies | Involved in a significant $13 billion deal acquiring NFP. |
| NFP | Target Company | Companies | Acquired by AON in a $13 billion deal. |
| Marsh McLennan Agencies | Bidding Company | Companies | Acquired McGriff Insurance Services for $7.75 billion. |
| McGriff Insurance Services | Target Company | Companies | Target of a $7.75 billion acquisition by Marsh McLennan Agencies. |
| Arthur J. Gallagher | Bidding Company | Companies | Entered into an agreement to acquire AssuredPartners for $13.45 billion. |
| AssuredPartners | Target Company | Companies | Being acquired by Arthur J. Gallagher with a deal expected to close in early 2025. |
| PCF | Active Buyer | Companies | Resumed acquisition activities after a slowdown. |
| Relation | Active Buyer | Companies | Resumed acquisition activities after a brief slowdown. |