2025 Report: Decline in Insurance Mergers & Acquisitions

In 2025, the insurance industry witnessed a deceleration in merger and acquisition activity within the agency sector, signifying ongoing consolidation trends. This conclusion is supported by a recent report from OPTIS Partners, a Minneapolis-based consultancy specializing in financial and regulatory compliance. According to their data, there were 695 announced mergers and acquisitions, marking a 12% decline from 2024 and reflecting a continued drop in deal activity for the third year in a row.

Private equity-backed and hybrid buyers predominantly drove market transactions, completing 73% of acquisitions despite an 11% decrease in deals compared to the previous year. Notably, BroadStreet Partners emerged as the leading buyer, executing 69 acquisitions, albeit down from 90 in 2024. Other significant transactions included Arthur J. Gallagher's acquisition of Woodruff Sawyer and Assured Partners' purchase of Accession Risk Management, highlighting strategic moves in claims and risk management.

Tim Cunningham of OPTIS Partners anticipates "more large deals and recapitalizations" in 2026, pending stability in economic and insurance market dynamics. Property and casualty insurance agencies dominated the sector-specific transaction activity with 66% of the deals, reflecting strategic interests in underwriting and carrier partnerships. This ongoing consolidation indicates a robust focus on enhancing regulatory compliance and optimizing industry risk management strategies.