The Changing Buyer Landscape

There was an unexpectedly high number of large dollar value M&A deals in the insurance brokerage space in 2024.

It felt like every few months a big insurance broker (and active buyer) would announce its sale to an even bigger broker. In the middle of all of that action were the “big three” public brokers by revenue—Marsh McLennan, Aon, and Gallagher.

Over the course of 12 months: Aon, the second-largest U.S. insurance broker, completed its $13 billion acquisition of middle-market property and casualty broker NFP, previously the 13th-ranked U.S. broker; top-ranked U.S. broker Marsh McLennan bought McGriff Insurance Services for $7.75 billion from seventh-ranked broker TIH Insurance; and the third-largest U.S. insurance broker, Gallagher, announced its acquisition of 11th-ranked AssuredPartners (AP) for $13.45 billion, theoretically taking a large buyer off the M&A table.

These large acquisitions involving the consolidation of top strategic firms may create speculation on the downstream implications, including concerns that the oversized deals could make similar deals more likely and could shrink the overall M&A buyer pool.

Every firm has its own strategy for growth and model for integration, making every transaction unique. Because of this, every deal impacts the broader market differently. Ultimately, none of this points to there being fewer buyers or any slowdown of M&A activity for insurance brokerages.

Look at NFP’s rich history of strategic acquisitions. Since 2018, NFP had completed over 200 transactions before being bought up itself. It made another eight deals after its acquisition by Aon. Any concerns that NFP would no longer be a unique buyer have been quelled.

Gallagher was the most active public brokerage buyer in 2024, with 25 announced transactions. Even with the blockbuster deal for AssuredPartners, the company is expected to maintain its aggressive M&A strategy and expansion. By bringing AssuredPartners into the fold, Gallagher has opened up scale and additional M&A opportunities in the United Kingdom and Ireland, where AssuredPartners is listed as a top 50 broker.

Other recent transactions in the market point to continued aggressive M&A activity. Leavitt Group Enterprises, a top 25 U.S. broker, recently took a $240 million minority stake equity investment from private equity firm Capital Z. Leavitt has been a top buyer the past few years, making 30 acquisitions in 2024. This investment from Capital Z should accelerate Leavitt’s activity as a buyer.

There are also rumors that privately owned, U.K.-based broker Howden Group Holdings is looking to acquire a U.S.-based firm to further its global presence. Howden is reportedly targeting U.S. companies with enterprise values in the $10 billion to $20 billion range, putting some big brokers on notice. However, such a deal would not necessarily prevent that acquired broker from continuing to make deals at the same or faster pace. It also would enable Howden to compete more effectively with the big three brokers, adding another powerhouse buyer to the U.S. M&A market.

The large number of existing buyers, compounded with potential new dealmakers, including more interest from private equity firms that are constantly looking to deploy capital, should ensure that the insurance brokerage buyer landscape remains robust.

But make no mistake: the landscape is changing. The top of the food chain will continue to consolidate as large firms acquire other large firms. To remain competitive, smaller, independent firms must continue to focus on how to grow their business and not remain reliant on rate and market exposure to drive their top line. Firms that build a value proposition that is attractive to their target clients will be in a great position to control their future—either to remain independent or to partner with one of the many well-capitalized buyers in the marketplace.

M&A Market Update

As of Jan. 31, there were 43 announced insurance brokerage M&A transactions in the United States in 2025. Private capital-backed buyers accounted for 34 of the 43 deals (79.1%) through January. Independent agencies were buyers in seven deals, representing 13.3% of the market. Bank buyers announced no transactions in January. Deals involving specialty distributors as targets accounted for three transactions.

Ten buyers accounted for 72.1% of all announced transactions in the first month of the year, while the top three (BroadStreet Partners, Tropolis, and Trucordia) accounted for 37.2% of the 43 transactions.

Notable Transactions

• January 14: OneDigital acquired the Small Group Benefits division of Mylo, further expanding its comprehensive suite of insurance, financial services, and HR consulting solutions. The acquisition strengthens OneDigital’s presence in the small business segment, serving companies with 99 or fewer employees across national and regional markets. The Small Group Benefits portfolio includes medical, dental, vision, life, disability, accident, and critical illness coverage. MarshBerry advised Mylo on the transaction.
• January 28: Trucordia acquired CADA Insurance Services, expanding its presence in Louisiana with new offices in Baton Rouge, Chalmette, Gretna, and Kenner. The acquisition strengthens Trucordia’s portfolio of auto, home, commercial, general liability, and workers compensation insurance. MarshBerry advised CADA Insurance Services on the transaction.
• February 3: Ryan Specialty acquired Velocity Risk Underwriters, a Nashville-based managing general underwriter (MGU) specializing in catastrophe-exposed property risks. Velocity, founded in 2015, provides coverage for perils such as hurricanes, earthquakes, tornadoes, and hail, focusing on small to mid-sized commercial businesses. The $525 million transaction strengthens Ryan Specialty’s underwriting capabilities in property catastrophe coverage, particularly in high-risk areas such as Florida, Texas, and the Southeast. The deal also enhances Ryan Specialty Underwriting Managers’ delegated authority platform while integrating Velocity’s technology, portfolio management, and data analytics expertise. As part of the transaction, Velocity’s wholly owned E&S carrier, Velocity Specialty Insurance, will be acquired separately by FM, a leading commercial property mutual insurer. That deal is scheduled to close in the first half of the year.