2025 Insurance M&A Trends: Key Insights & Future Projections

In 2025, mergers and acquisitions among insurance intermediaries, including agents, brokers, and third-party administrators, saw a 12% decline with 695 deals announced, according to a Chicago-based investment banking and consulting firm. This level of activity mirrors the landscape prior to the COVID-19 pandemic disruptions, reflecting 2019 figures.

According to Steve Germundson, a partner at Optis, "2019 and 2025 are distinct in that the fourth quarter deal volume was lower compared to other quarters, with December not being the peak month for closings." This indicates a more consistent distribution of transactions throughout the year, contrasting with previous patterns.

Trends in Private Equity and Major Deals

Private equity-backed buyers continue to dominate the sector, responsible for 73% of the transactions. Notably, Broadstreet Partners emerged as the most active broker, executing 69 deals despite a decrease from 90 deals in 2024. Hub and Inszone followed, closing 49 and 45 deals, respectively, both reflecting slight declines from previous figures.

In spite of reduced transaction numbers, several significant deals were announced. Arthur J. Gallagher & Co. acquired AssuredPartners, with revenues of $2.9 billion, and Woodruff Sawyer, with $268 million in revenue. Brown & Brown purchased Accession Risk Management, reporting $1.7 billion in revenue. Meanwhile, The Baldwin Group acquired CAC Group, reporting $282 million in revenue, and Willis Towers Watson disclosed a deal with Newfront, valued at $235 million.

Future Projections and Industry Insight

Tim Cunningham, managing partner at Optis, anticipates an uptick in substantial transactions and recapitalizations in 2026, as the industry pursues growth through scale. This trend is underpinned by evolving regulatory compliance requirements and a focus on AI-driven prior authorization delays impacting payer-provider dynamics.

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