Mergers & Acquisitions Trends in Insurance Q1 2026
The volume of mergers and acquisitions within insurance firms in the United States and Canada declined by 6% in the first quarter of 2026 compared to the same period the previous year, as reported by OPTIS Partners. Despite this decrease, indications suggest that the downward trend may stabilize. The OPTIS Partners database recorded 148 insurance agency mergers and acquisitions during the first quarter, marking the tenth consecutive quarter where deal numbers remained below the long-term trend.
Steve Germundson, a partner at OPTIS Partners, stated, "The industry has experienced a decline in deal volume over the past three years, but we anticipate it will stabilize around 650 deals annually.” Private equity-backed entities were the predominant buyers, accounting for 72% of acquisitions during this period. This group includes private-equity and hybrid buyers like BroadStreet, along with institutional investors such as family offices, pension funds, and sovereign wealth funds.
Among the 55 active buyers last quarter, 29 were private-equity backed, with four making their first deals. Privately held brokers accounted for 19 of the buyers, with five new entrants. Inszone Insurance Services and BroadStreet Partners led in acquisition activity with 17 and 16 deals, respectively, in the first quarter. Other firms like World Insurance Associates and ALKEME also completed multiple transactions, while historically active entities like Hub International engaged in fewer acquisitions this quarter.
On the selling side, property/casualty (P&C) agencies were the most common, representing 68% of all transactions. P&C/Benefits agencies accounted for 10% of sales, and benefits agencies comprised 9%. Remaining transactions involved categories such as third-party administrators and life insurance-focused agencies. These insights reveal the prevalent trends in the insurance mergers and acquisitions landscape.
OPTIS managing partner Tim Cunningham emphasized that current market conditions are fostering acquisition interest from private-equity-backed companies and various private and public buyers. Many of the approximately 25,000 to 30,000 firms in the U.S. are small and poised for ownership changes. "We observe a growing number of ventures supported by private-equity and family-office capital targeting this segment due to the abundant supply of sellers and technological advancements," Cunningham stated.
For detailed insights, the complete report is available in the Q1 2026 Merger & Acquisition Update by OPTIS Partners. They are based in Chicago and offer extensive services related to mergers and acquisitions within the insurance distribution sector.