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Brokerage deal activity cools as buyer pool shrinks and leverage rises
North American agent and broker transactions fell 12% in 2025 and 27% among publicly traded brokers, as more buyers apply higher acquisition hurdles.
Insurance brokerage M&A is increasingly bifurcating between large strategic deals and a wider market where acquisition activity is declining, according to Insurance Business.
OPTIS Partners data cited by the outlet shows 695 North American agent and broker transactions in 2025, down 12% from 2024 and 24% below the previous five-year average. Private equity-backed brokers completed 10% fewer acquisitions, and activity among publicly traded brokers fell 27%. The number of identifiable buyers declined for a fourth straight year, dropping from 104 in 2024 to 95.
The reported slowdown is not limited to North America. Insurance Business says only 56 UK insurance distribution transactions were announced through August 2026, down 16% versus the same period last year, and that several consolidators have reduced or paused UK acquisition programs.
The outlet points to contrasting pockets of dealmaking: Aon agreed on August 31 to acquire USI Insurance Services for $17 billion, and EQT announced a $2 billion agreement for a majority stake in specialty broker McGill and Partners. Igno van Waesberghe of Aquiline said the market is seeing a “logjam,” with listed brokers applying higher thresholds as public valuations face pressure, while leverage at some private equity-backed platforms may limit further acquisitions or IPOs near term.