Declining Insurance M&A Activity in North America: 2025 Insights
Insurance M&A Activity in North America Declines in 2025: Insights from OPTIS Partners
In an analytical report by OPTIS Partners, a prominent financial consulting firm in the insurance industry, it was observed that mergers and acquisitions (M&A) across the U.S. and Canada saw a downturn in 2025. The report cites a total of 695 transactions for the year, marking a 12% drop from the previous year's figures. This trend aligns with a continuous consolidation pattern that has been reshaping the industry since 2021.
According to Steve Germundson, a partner at OPTIS Partners, the M&A environment closely resembles that of 2019, with consistent transaction volumes and evenly distributed deals throughout the year. "Both 2019 and 2025 were characterized by lower-than-expected fourth-quarter transactions, with December ceasing to be the peak month for closings," Germundson remarked.
Private equity-backed entities remain prominent, accounting for 73% of these acquisitions, which feature insurance brokers along with institutional investors such as pension funds and family offices. Germundson highlighted an 11% decrease in deals by private equity-backed brokers, mirroring a similar 9% dip for privately held brokers and a substantial 27% decline for publicly held brokers.
Top Acquirers and Market Dynamics
BroadStreet Partners and Hub International emerged as leading acquirers, with BroadStreet closing 69 deals, down from 90 in 2024. Hub International completed 49 transactions, a decrease from 61 previously. Inszone Insurance Services and Leavitt Group were also active contributors to the M&A landscape for the year.
Significant agreements included notable transactions such as Arthur J. Gallagher acquiring Woodruff Sawyer and Assured Partners, alongside Brown & Brown's purchase of Accession Risk Management. These high-valuation transactions indicate a resilient market for quality sellers despite regulatory compliance requirements.
Outlook and Sector Focus
Tim Cunningham, managing partner at OPTIS Partners, anticipates vigorous M&A activity in 2026, driven by the quest for scale and the high valuations of sellers, contingent upon a stable economic climate. The report also recorded a decrease in unique buyers to 95, compared to 104 in the prior year.
Focusing on sector-specific trends, property and casualty insurance agencies dominated the market, constituting 66% of the transactions. Additionally, employee benefits specialists and dual-service agents comprised 13% and 9% of the transactions, respectively.
For comprehensive insights, the complete OPTIS Partners report is available on their website, offering detailed coverage of the M&A landscape in 2025.
About OPTIS Partners
Based in Minneapolis, OPTIS Partners provides extensive services in the insurance distribution sector, encompassing due diligence, valuation, underwriting, and strategic planning. Contact the key partners directly for detailed inquiries.
Steve Germundson, Partner – germundson@optisins.com
Tim Cunningham, Managing Partner – cunningham@optisins.com
Dan Menzer, Partner – menzer@optisins.com