The North American insurance brokerage M&A market is cooling off, with deal activity declining 8% in the first half of 2025. OPTIS Partners reported 319 transactions across the US and Canada, down from 345 in the same period last year.
Market Enters “New Normal”: Industry experts believe the market has reached a sustainable pace after years of frenzied deal-making. Steve Germundson of OPTIS Partners expects annual deal volume to stabilize at 750-800 transactions going forward.
Despite the overall slowdown, Q2 2025 showed signs of recovery with 168 deals—an 11% increase from Q2 2024.
Private Equity Still Dominates: Private equity-backed firms continue driving consolidation, accounting for 73% of all deals through 32 active buyers.
The top 11 buyers captured 59% of total deal volume, with most backed by private equity capital. BroadStreet Partners led activity with 39 deals, followed by Hub International (27) and Inszone Insurance Services (18).
P&C Focus Continues: Property and casualty agencies dominated transactions, representing 209 of the 319 deals (65%). Mixed P&C and benefits agencies accounted for 27 deals (8%), while standalone benefits agencies comprised 42 transactions (13%).
Most transactions involved US-based sellers (305), while Canadian brokerages accounted for 14 deals.
The data suggests the insurance M&A market is transitioning from explosive growth to measured consolidation, with sustained demand for P&C distribution assets driving strategic acquisitions focused on geographic expansion and scale.
