M&A Picks up the Pace in Early 2025

After a strong showing in 2024 for insurance brokerage mergers and acquisitions (M&A), the question now is whether 2025 can sustain the momentum.

Donald Trump’s second election as president in November quickly quelled any fears for potential capital gains tax changes, so many deals were put on hold in December to delay the timing on taxes until 2026.

The 85 deals announced through the end of February represent a 25% increase in deals from the 68 announced at the same period last year. Some of this is likely the result of deal holdovers from December 2024, but not all of it. Optimism for strong deal activity has carried over from last year, fueled by stabilized inflation and lower cost of capital (due to the interest rate cuts at the end of 2024). However, much will depend on the overall health of the U.S. economy going forward, including the Federal Reserve’s monetary policy, and how Trump’s policies on trade, regulation, and immigration impact inflation, business, and the labor market. There’s also the continued question on the scheduled expiration of core measures of the Tax Cuts and Jobs Act (TCJA) at the end of 2025. Without executive action, expiration could impact personal income and capital gains taxes in 2026.

Today, the economy feels strong and the debt markets are friendlier to buyers than they were a year ago. Many buyers are in the market repricing their debt stack to more favorable interest rates. This will create additional cash flow and flexibility for buyers to be aggressive on acquisitive growth in 2025.

M&A Market Update

Private capital-backed buyers accounted for 57 of the 85 deals (67.1%) announced through February. Independent agencies were buyers in 20 deals, representing 23.5% of the market. There was one announced transaction by bank buyers in the first two months of 2025. Deals involving specialty distributors as targets accounted for 10 transactions, about 12% of the total market, continuing the trend of low supply of specialty firms.

Ten buyers accounted for 60% of all announced transactions year to date, while the top three (BroadStreet Partners, Hub International, and NavSav Insurance) made 23 (27.1%) of the 85 deals.

Notable Transactions

• February 10: Hub International has acquired the assets of Mayfield Insurance, an independent insurance agency based in Mooresville, Ind., that offers a range of commercial and personal insurance products. The terms of the transaction were not disclosed. Mayfield Insurance’s president, Dean Mayfield, and team will join Hub Midwest East. MarshBerry served as advisor to Mayfield in the transaction.
• February 24: NSM Insurance Group has signed a definitive agreement to sell its U.S. commercial insurance division to New Mountain Capital, an investment firm managing over $55 billion in assets. The transaction, expected to close within 45 days pending regulatory approvals, includes NSM’s portfolio of 15 niche insurance programs across property and casualty, accident and health, and reinsurance, along with its retail agency, NSM Insurance Brokers. Aaron Miller, NSM’s chief commercial lines officer, will take over as CEO of the newly formed entity, with NSM CEO Geof McKernan and President Bill McKernan joining its board.
• March 3: AmeriLife Group has completed its acquisition of Crump Life Insurance Services and Hanleigh Management from TIH Insurance. Financial terms were not disclosed. Crump will continue operating as an independent brand under AmeriLife Wealth Group, with CEO Mike Martini remaining at the helm.