AGI's Acquisition Strategy in a Shifting Insurance Market
Independent insurance agency owners considering a sale face a market with fewer potential buyers, even as exits among agencies increase. This backdrop frames American Growth Insurance's (AGI) acquisition of Heller-Kowitz Insurance Advisors in Baltimore. This acquisition marks the start of AGI's strategy to develop a network of operator-led agencies in the Mid-Atlantic region. Financial backers of this transaction include Rockbridge Growth Equity and Atomic, though the financial details remain undisclosed.
According to OPTIS Partners, the number of unique acquirers in the agency mergers and acquisitions sector has been declining over the past four years, decreasing from 104 in 2024 to 95 in 2025. Despite this trend, about 30,000 independent agencies with revenues below $1.25 million remain active, many without a succession plan. This reduced buyer competition could impact selling prices and terms for agency owners.
The overall volume of agency transactions reflects this shift. OPTIS Partners reports a total of 646 deals over the previous 12 months, marking the lowest count since early 2019. Notably, acquisitions by private equity-backed and hybrid buyers constituted 75% of these transactions, with 80% occurring in the second quarter of 2026 alone. Among the 68 active buyers in the first half of 2026, 37 were private equity-backed, including six making their inaugural agency acquisitions, to which AGI now belongs.
Founded in 2014 by Steve Heller and Brian Kowitz, Heller-Kowitz Insurance Advisors is recognized for its services across personal lines, commercial lines, employee benefits, and life insurance. The agency holds Reagan Consulting Best Practices status. Brian Kowitz noted that most acquisition offers had been similar until AGI's distinct proposal emerged, highlighting AGI’s focus on operational excellence, client-centered strategies, and advanced technology.
Steve Heller emphasized the importance of technology in maintaining operational efficiency without compromising agency culture. "We are committed to adopting technology that drives scalability and operational excellence without compromising the culture that defines who we are," Heller stated. This balance between innovation and team engagement remains pivotal.
AGI claims that its business model, tested with 10 agencies for about a year before this acquisition, has significantly boosted agency profitability. The company’s governance model ensures partner firms have a voice in strategic and technological decisions. AGI's CEO, Brian Morgan, highlighted the synergy between operational expertise and technology as crucial for future success. "We believe the future of insurance will be built by combining great operators with great technology," Morgan stated, emphasizing AI integration within agency operations.
Within the Mid-Atlantic region, other agencies are also seeing consolidation. Ensurise LLC, a Greater Washington advisory firm, merged with WSMT Insurance in Maryland earlier this year, continuing its growth via partnerships. This trend is part of a national scenario where 241 U.S. brokerage deals were announced by May 2026, marking a 5.1% decline from the previous year. Private capital-backed purchasers were responsible for 70.5% of these transactions, according to MarshBerry.
AGI aims to continue partnering with brokerage operators seeking larger scale, increased automation, and broader carrier networks while maintaining the client relationships that underpin their businesses. As they proceed with further acquisitions, the viability of AGI’s strategy will be closely observed amidst a narrowing pool of potential buyers and a growing roster of agencies weighing their options.