Racing Toward the Record Books

Until merger and acquisition (M&A) transaction volume for insurance brokerages surpasses the anomalous record-breaking 2021, every year will pale in comparison.

Still, M&A activity throughout 2024 had a “2021” quality to it, with strong economic tailwinds, large and potentially industry-changing deals, and a presidential election that created apprehension about capital gains tax changes. On paper, it felt like 2024 could challenge the record. In the end, insurance brokerage acquisition activity in 2024 surpassed 2023, but only won the bronze— delivering the third-highest deal count with 847 announced transactions in the United States.

Ultimately, the story around M&A in 2024 will be less about the total numbers and more about certain deals and specific buyers and sellers. Last year, a number of large strategic brokers were acquired by other, larger strategic brokers. Aon’s acquisition of NFP and Gallagher’s acquisition of AssuredPartners, among others, raised questions about the broader market. Could they signal a trend toward similar strategic partnerships? If the big continue to get bigger and the top of the food chain consolidates further, can deal volume and values be sustained?

Only time will tell. 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. But none of this points to a trend of fewer buyers in the market or a slowdown in M&A activity. Currently, all signs point to another active year, including the potential for a few more large strategic deals. Even with a reduced number of acquirers in the game, buyer demand remains strong and eclipses seller supply by two to three times.

But make no mistake—the landscape is changing. The top of the food chain will continue to consolidate. To remain competitive, smaller, independent firms must focus more on value-added services, industry specialization, and data intelligence to help the end client. Buyers have taken advantage of recent debt market conditions, and many are repricing their current debt stack to more favorable interest rates. This movement will create additional cash flow and flexibility for buyers to aggressively pursue acquisitive growth.

Firms that focus on growing their business, and that do not remain reliant on rate and market exposure to drive their top line, 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.

Economic Overview

In 2024, inflationary pressures eased, the Federal Reserve (Fed) cut interest rates three times, the labor market remained strong, real gross domestic product (GDP) increased, and the financial markets reached historic highs.

The Fed Inflation Battle Ends

After 11 interest rate hikes since March 2022, the Fed’s battle with inflation finally ended in September 2024 with the first of three interest rate cuts: a 50-basis-point reduction that was followed by 25-basis-point cuts in November and December.

Fed projection materials released in December indicated that it expects to lower the federal funds rate to a 3.9% median by the end of 2025, suggesting further interest-rate cuts this year.

Labor Market Begins To Weaken

Interest rate hikes throughout 2023 theoretically should have created a headwind to business investment and growth, resulting in fewer job openings and higher unemployment. And while unemployment remained low that year, the unemployment rate began to rise by February 2024, reaching 4.0% in May for the first time since January 2022. While the Fed maintained that labor market conditions remained solid throughout the year, it deemed the economic outlook uncertain enough to warrant those three interest rate cuts that brought the federal funds rate down by 1%.

It is commonly accepted that the economy’s reactions lag monetary policy changes, so both inflation and unemployment could change further due to the Fed’s actions over the past two years.

GDP Outperforms Forecast

Heading into 2024, forecasters anticipated that real GDP growth would slow as unemployment rose. However, GDP appears to be on track to exceed those expectations—it rose at annualized rates of 1.6%, 3.0%, and 3.1% in the first three quarters of the year. The primary contributor to that growth was household consumption spending on services, followed by business investment and government spending. Consumer spending on goods, and a change in private inventories, varied through the three quarters but had a net positive impact on GDP. Changes in residential investment also varied during that period but had mixed results on overall GDP. A decrease in net exports offset further advances.

Equity Markets Continue Growth

Equity markets grew strongly in 2024, as evidenced by major indices ending the year in positive territory. The four leading U.S. indices—the S&P 500, Dow Jones Industrial Average, Nasdaq Composite, and Russell 2000—rose 23.3%, 12.9%, 28.6%, and 10.0%, respectively. This was the second year of gains following declines in 2022.

Over the course of the year, the S&P 500, Dow Jones, and Nasdaq each hit multiple all-time closing highs. Tech stocks, especially the “Magnificent Seven,” helped drive overall results for the S&P 500 and Nasdaq Composite. All four indices rallied noticeably following the November presidential election. Other major drivers of market performance for the year included the strength of the U.S. economy, the possibility of future interest rate cuts, and investor excitement around artificial intelligence.

P&C Market Profitability Improves

The U.S. property and casualty (P&C) sector’s financial performance improved markedly in 2024. AM Best reported that the sector recorded $4.1 billion in underwriting profits for the first nine months of 2024—up significantly from the $32.1 billion loss reported for the same period in 2023. This can be attributed to several factors, including improvements in rates, risk selection, program design, and portfolio yields, as well as an improving outlook for personal lines. Additionally, insurance companies’ surplus—the difference between assets and liabilities—stood at $1.1 trillion through the first three quarters of 2024, further highlighting the industry’s financial strength. (Full-year 2024 data was not available at time of writing.)

P&C insurance rates showed some signs of stabilization in 2024, with commercial P&C premiums rising by an average of 5.4% across all account sizes in the fourth quarter, according to The Council’s Property/Casualty Market Survey. That was slightly above 5.1% and 5.2% increases in the third and second quarters, respectively, but well under the first quarter’s 7.7% average premium increase.

Underwriting Profits Begin To Rebound

Through the first three quarters of 2024, the P&C market’s combined ratio registered below 100, with preliminary results indicating a ratio of 97.5.

(Combined ratios under 100 indicate underwriting gains, while ratios over 100 indicate losses.) However, it remains to be seen how losses from the fourth-quarter landfalls of Hurricanes Helene and Milton along the East Coast will impact the final combined ratio for 2024.

Compare this potential rebound in underwriting profits to the market’s combined ratios in 2022 and 2023, which both registered over 100. These losses were linked primarily to weakness in personal lines, with natural catastrophe losses driving much of this unprofitability.

In general, the industry is seemingly beginning to adjust to the increasing regularity of extreme weather events, as evidenced by the significant rise in the size of the excess and surplus (E&S) lines market. The E&S market is estimated to have generated roughly $210 billion in premiums in 2024, which comprised nearly one in every five dollars of premium placed in the U.S. P&C market. That was up from a 10% market share a decade ago.

Broker Organic Growth Begins To Fall

Despite a strong year for the insurance industry, organic growth rates declined for both public and independent brokers. In 2024, public brokers averaged 9.0% organic growth (down from 10.4% in 2023), while all agencies averaged 8.7% (down from an all-time high of 9.8% in 2023). The industry is still considered to be in a hard market environment, with premiums rising for most lines of business—but they are not rising as drastically as in previous years.

Organic growth often tracks with movements in GDP growth. Inflation and increasing demand for some lines of coverage have expanded the total insurable value of the U.S. economy even as economic growth has settled around 2.5% to 3% for the past few years.

Valuations Reach All-Time Highs

Despite a few years of economic headwinds created by high inflation and the rising cost of capital, insurance brokerage M&A transaction values continue to increase. Valuations reached historical levels in 2024 as the economic landscape shifted, capital became more affordable, and demand for insurance brokerage firms outpaced supply.

Average valuations for all firms, as a multiple of EBITDA on an upfront base purchase price, reached an all-time high of 11.22x for the year. That was the first time that the average base purchase price exceeded 11x and was a 3.6% increase over 2023. Meanwhile, the maximum potential earnouts for firms in 2024 also reached an all-time high of 15.06x EBITDA.

Platform firms (which are typically larger firms that operate in a well-established territory, have brand recognition, employ seasoned professionals, and are built within a scalable infrastructure) are commanding even higher valuations than the average. Platform firms for 2024 recorded an all-time high average multiple of 14.02x on an upfront base purchase price.

Maximum potential earnout multiples for platform firms was 18.10x.

Insurance Brokerages Raise More Debt

In 2024, brokerages raised over $100 billion in institutional debt, the highest amount ever raised across the insurance industry in a single year. Even with the elevated cost of capital over the past few years, spreads have come down—highlighting that the investment community in this credit class is being more aggressive. Relevant to the amount of debt a buyer can borrow, leverage ratios are creeping back up near 7x—like the good old days of 2021. Debt capacity is rising, while debt pricing hopefully continues to drop throughout 2025.

Given the perennial need for insurance products, the industry’s recurring revenue model, and resiliency during tough market conditions and global adversity, the credit markets have great confidence in the insurance industry and continue to support these highly leveraged brokers’ pursuits. The top investors during this hard market have been private equity (PE) firms.

However, despite the level of debt raised, much of this dry powder has remained undeployed as demand for insurance brokerages continues to outpace supply.

2024 Insurance Brokerage M&A Review

In 2024, there were 847 insurance brokerage transactions in the United States. This deal count represents a 5.0% increase from 2023 and the third most active year on record.

Who’s Buying?

Private capital-backed buyers accounted for 593 of the 847 transactions (70%) in 2024, continuing a multiyear trend of dominating the insurance distribution M&A market. The total number of deals by these buyers increased by a 6.1% compound annual growth rate (CAGR) from 2018 to 2024.

Independent agencies were the buyers in 163 deals, representing 19.2% of the market, a notable increase from 15.6% in 2023. Public brokerages announced 57 deals, roughly 6.7% of the total transaction count (versus 6.2% in 2023). Banks announced only 10 buys, effectively level with nine deals in 2023 but a notable drop from 18 in 2022.

2024’S Most Active Buyers

For the second consecutive year the three most active U.S. buyers were BroadStreet Partners (76 deals), Inszone Insurance Services (60 deals), and Hub International (48 deals). This marks Hub’s third consecutive year as a top three acquirer. Their combined transactions (184) accounted for 21.7% of the total in 2024, while the 10 most active buyers completed 368 of the 847 deals (43.4% of the total).

Private Capital-Backed Buyers Remain Most Active

Private capital remains interested in insurance distribution because of the industry’s continuous resilience through all market conditions and strong financial results. Private capital-backed buyers are estimated to have raised nearly $64 billion in high-yield debt in 2024. Those buyers included 47 unique insurance brokerages, plus 12 “other” types of capital-backed buyers, such as investment firms and private capital-backed companies in other industries. That was a slight decrease from 52 unique brokerages and 16 “other” capital-backed buyers in 2023, and still a relatively small concentration compared to the total number of transactions.

In 2024, there was a shift in concentration among private capital-backed buyers, with more activity coming from the top. Among the notable trends:

• If BroadStreet Partners, the most active buyer in 2024, had maintained its 2023 level of buying activity (in which it led all buyers with 47 deals), it would have only been the fourth-most-active buyer in 2024.
• Twenty-one private capital-backed buyers in 2024 completed 10 or more transactions—matching the number of buyers in 2023 with 10 or more deals. X
• Of the 47 unique private capital-backed insurance brokerage buyers in 2024, 31 increased their activity from 2023, 15 were less active, and one firm (Alera Group) held steady.
• A total of 153 unique buyers announced completed transactions in 2024, dropping from 169 in 2023 and 211 in 2022. However, the number of firms that completed two or more transactions rose from 68 in both 2022 and 2023 to 73 in 2024.

Independent Buyers Bounce Back

Sixty-nine independent firms without known private capital backing announced transactions in 2024, 10 of which accounted for nearly half (80) of the 163 announced transactions for this segment.

It’s worth noting that the Nos. 1 and 3 independent buyers, Leavitt Group Enterprises and Woodlands Financial Group, both underwent ownership changes last year that removed them from that segment going forward. With that change, independent firms’ market share is expected to decrease in 2025.

Public Brokerages Deliver Headline Deals In 2024

While public brokerages owned only a modest sliver of the total number of M&A transactions in 2024, the top three brokers owned the biggest deals.

Gallagher, the third-largest U.S. insurance broker, was again the most active buyer within this segment with 25 announced domestic deals. In December, Gallagher announced its acquisition of 11th-ranked AssuredPartners for $13.45 billion. The transaction, which is considered the largest sale of a U.S. insurance broker to a strategic acquirer, is expected to close in the latter half of 2025 after previously been due to wrap up in the first quarter.

Marsh & McLennan, the top-ranked U.S. broker, completed 10 domestic acquisitions in 2024, including finalizing the $7.75 billion acquisition of McGriff Insurance Services through its Marsh McLennan Agency. McGriff was an affiliate of seventh-ranked U.S. broker TIH Insurance (formerly Truist Insurance).

Aon, the second-largest U.S. insurance broker, completed nine domestic acquisitions in 2024, a substantial increase over the single deal transacted in 2023. However, that was the $13 billion acquisition of middle-market property and casualty broker NFP, previously the 13th-ranked U.S. broker, which closed in April 2024.

Here’s how each of the other public brokers fared in 2024:

• Brown & Brown completed seven U.S. transactions, matching its count from 2023;
• Ryan Specialty completed five U.S. transactions in 2024, compared to four in 2023; and
• Willis Towers Watson and The Baldwin Group made no U.S. transactions in 2024 or 2023.

Banks Continue To Pull Back From M&A

Along with nearly halving from just two years earlier, bank buyers’ 10 acquisitions in 2024 were exactly equal to their number of divestitures of insurance brokerages for the year.

The number of insurance brokerage acquisitions by banks has steadily declined for the past 15 years. In 2007, these transactions represented approximately 21.7% of total announced insurance brokerage M&A acquisitions. By 2012, that percentage dropped to 6.4%, and in 2024 it was only 1.1% of total deals.

This declining trend is expected to continue, as banks struggle to compete with private equity buyers and face balance sheet pressures in the aftermath of several bank collapses in early 2023.

The largest insurance broker sale by a U.S. bank since 2017 occurred last year: the $7.60 billion sale of Truist Insurance by Truist Financial to an investor group.

U.S. Buyers Continue International Expansion

U.S. buyers are also stepping up their M&A activity abroad—completing 45 acquisitions outside of North America in 2024, with Brown & Brown leading the way with 16 transactions. In fact, European deal activity by U.S.-based buyers grew at a 32% CAGR from 2020 to 2024.

While the majority of these deals took place in Europe, buyers’ appetites for quality insurance brokers have increased, expanding their footprint into new territories. A handful of 2024 deals were completed in Asia, Australia, Latin America, South America, and the Middle East.

What’s Being Bought?

Property and casualty brokers as acquisition targets accounted for 59% of deals in 2024, with employee benefits (EB) and consulting brokers taking 20% of the market and multiline brokers 21%.

There were 120 transactions for specialty distributors, or 14% of the total acquisitions in 2024. This total deal count and percentage share were down from 181 and 22% in 2023. It also reverses the three-year trend of increasing percentage share for specialty distributors. The prevailing theory ascribes this decline to a lack of specialty firm sellers, rather than a shift in buyer interest, as quality specialty firms continue to fetch premium multiples.

Top 10 Most Notable Transactions In 2024

• APRIL 25: Aon completed its acquisition of NFP (announced in December 2023), a leading middle market P&C broker, benefits consultant, wealth manager, and retirement plan advisor. The transaction had an enterprise value of $13 billion, encompassing $7 billion in cash and assumed liabilities, along with $6 billion in equity through 19 million Aon shares. The deal expands Aon’s presence in the middle-market segment. NFP operates as an “independent and connected” platform within Aon.
• MAY 7: Truist Financial finalized the sale of its remaining stake in Truist Insurance Holdings (TIH) to an investor group led by Stone Point Capital and Clayton, Dubilier & Rice, with participation from Mubadala Investment and other co-investors. The all-cash transaction valued TIH at $15.5 billion, positioning it as a fully independent entity.
• JULY 1: Reverence Capital Partners agreed to acquire a majority stake in Sunstar Insurance Group, a Memphis-based retail insurance brokerage. Sunstar, ranked as the 33rd-largest independent agency in the nation, focuses on commercial P&C, personal P&C, and employee benefits across the Southeast and Midwest. The investment aligns with Reverence Capital’s strategy of backing strong insurance distribution platforms.
• JULY 2: Blackstone acquired a minority stake in Higginbotham. The transaction reflects the first outside sale in 15 years for the top 100 broker. The minority stake was acquired from private equity firm, and current shareholder, Stone Point Capital. Higginbotham remains largely employee-owned, and it is expected to stay that way for the foreseeable future, according to CEO Rusty Reid.
• AUG. 8: Ryan Specialty acquired US Assure Insurance Services for $1.08 billion in cash and up to $400 million in additional payments based upon performance targets to be met in the three years post-acquisition. US Assure is a leading specialist in the builder’s risk insurance segment and will be part of Ryan Specialty Underwriting Managers.
• AUG. 8: Simplicity Group entered into a definitive agreement for a majority investment from SkyKnight Capital and Dragoneer Investment Group. This transaction provides liquidity for Simplicity’s employee partners and facilitates the exit of Lee Equity Partners, which had been a key investor since 2020. Terms of the deal were not disclosed. Simplicity, a leading financial products distribution firm, has grown significantly through a combination of organic expansion and strategic acquisitions.
• SEPT. 17: Culpeper Insurance Partners made a significant investment in Afore Insurance Services. As part of the transaction, the two firms merged. The combined company, operating under the Afore Insurance Services name, strengthens its position as one of the top 100 largest insurance brokerages in the United States, with 20 offices across 10 states and nationwide business operations.
• NOV. 15: Marsh McLennan acquired McGriff Insurance Services from Truist Insurance for $7.75 billion in cash. The transaction was funded through a combination of cash and debt financing. As part of the deal, Marsh McLennan will assume a deferred tax asset valued at approximately $500 million. McGriff, a leading U.S. insurance broker with $1.3 billion in revenue, enhances Marsh McLennan Agency’s capabilities across commercial property and casualty, employee benefits, management liability, and personal lines.
• NOV. 22: Private equity firm Capital Z Partners announced it has taken a minority stake in Utah-based independent retail brokerage Leavitt Group for $240 million. This is Leavitt’s first private equity sale. Leavitt has been one of the most active independent agencies in the M&A market over the last five years and is the 26th largest agency in the United States.
• DEC. 9: Gallagher signed an agreement to acquire AssuredPartners for $13.45 billion. After considering an estimated $1.0 billion deferred tax asset, net consideration is approximately $12.45 billion. The deal strengthens Gallagher’s presence in the U.S. middle-market P&C and employee benefits spaces while expanding across key sectors such as transportation, energy, healthcare, and public entities. Additionally, it extends the company’s scale and expertise in the United Kingdom and Ireland.

Specialty Firm Deal Volume Slows

Following 2023’s all-time high number of specialty insurance firm M&A transactions, the number of announced transactions decreased by 33% last year. However, this decrease did not result from a lack of demand but rather a lack of quality acquisition targets.

The 120 announced specialty firm M&A transactions in 2024 dropped steeply from 2021 (179 deals), 2022 (175 deals), and the record-high 2023 (181 deals).

Nonetheless, acquisitions in specialty are occurring at a tremendous clip—a much greater speed than their retail counterparts. When compared to the relative population of retail brokers, specialty firms consolidated at a rate of 2.7x retail brokers in 2024.

Specialty firms remain highly sought after in the insurance sector and their valuations remain at historically high levels. A primary driver of this demand is the differentiated niche approach specialty firms bring to the distribution sector. This results in a high-quality, sustainable valuation proposition.

Given the robust buyer interest and rampant consolidation, the numbers of specialty firms are dwindling and the space is dominated by a smaller number of larger firms. In 2009, the market had five specialty firms with $1 billion or more in premium. In 2024, that number had exploded to over 28 firms, of which eight had at least $5 billion in premium and the top three each over $25 billion. Currently, the top 10 specialty firms control approximately 70% of all specialty P&C premium in the marketplace.

The Most Active Buyers Of Specialty Firms In 2024

• Integrity Marketing Group (IMG) made 29 specialty deals (of its 30 overall transactions) for the year. IMG has led the specialty buyer leader board for five consecutive years and is focused on the life and health sector.
• AmeriLife Group recorded eight transactions, following seven in 2023.
• Hub International, through its Specialty Program Group division, recorded six transactions.
• Warner Pacific Insurance Services, a full-service benefits general agency, completed six transactions after completing four in 2023. Warner Pacific is backed by private equity firm Lovell Minnick Partners.
• Ryan Specialty had a dynamic year, completing five significant U.S. specialty acquisitions that reinforced its position as a leader in the specialty insurance space. Key transactions for Ryan included the acquisitions of Castel Underwriting Agencies, Innovisk Capital Partners (in the United Kingdom), US Assure, certain programs of Ethos Specialty, Greenhill Underwriting Insurance Services, Geo Underwriting, and EverSports & Entertainment Insurance in the United States. Each acquisition expanded Ryan’s capabilities and market reach.

Large Retail Brokers Increasingly Interested In Specialty

Large retail brokers’ continued interest in the specialty space was a theme in 2024. Eight of the top 10 acquirers (and 15 of the top 20) have acquired specialty businesses in the past.

These firms prefer high-growth, niche segments with specialized expertise to capture premium revenue opportunities.

Rising premium volume in the specialty sector is a large driver of buyer interest in the space. MarshBerry estimates that specialty premium volume was over 20% of total U.S. P&C direct written premium in 2024. This is up from roughly 9% in 2010. This market share growth largely results from:

1. Historical level of admitted premium flowing into the excess and surplus market;

2. Rate (pricing) increases in several E&S focused segments, such as catastrophe-prone property;

3. Nuclear verdicts and social inflation; and

4. Exposure base expansion as the world becomes more complex (e.g., geopolitical pressures, individual state regulations not allowing admitted markets to adjust to underwriting results).

This premium flow is causing the specialty segment (i.e., E&S and delegated authority premium) to grow at a multiyear CAGR that is over two times that of the non-delegated authority admitted markets over the last decade. As such, wholesale brokers and delegated authority agents (commonly referred to as MGAs) are reaping the benefits of higher premiums. This growth trend and positive future outlook are driving strong buyer interest in this segment.

Specialty Market 2025 Outlook

While market and economic conditions risk becoming more challenging, further impacting the availability of debt and equity, for now demand remains robust for specialty firms. In 2025, consolidation of the specialty marketplace is likely to persist, with private capital-backed buyers maintaining a large presence. Valuations will likely continue to rise due to a limited supply of quality, niche specialty firms.

MarshBerry expects high-quality specialty firms with solid management teams, strong organic growth, and effective business plans with minimized concentration risks to continue commanding premium valuations in 2025 and beyond.

Wealth Advisory M&A Hits New High

Expectations for wealth advisory M&A activity in 2024 were high, driven by an improving economic environment, strong financial markets, and the continued diversity of buyer types interested in this space. The results exceeded those expectations.

The wealth advisory M&A market delivered a record-high 353 transactions, a 24.3% increase from 284 transactions recorded in 2023 and beating the previous record from 2022 by 45 deals.

Private Capital-Backed Buyers Lead Volume

Private capital-backed buyers represented the largest share of deals in 2024. Since 2020, their portion of overall deals in wealth advisory has grown by 20%, from 52% to 72%. This shift is partly attributed to a nearly equivalent decline in public buyers. The shift from public to private backing was mainly driven by the need to be more competitive in the marketplace, as privately backed firms can focus more on long-term growth as opposed to quarterly growth.

Insurance Brokerage Interest In Wealth Continues

In 2024, there were 35 announced transactions with insurance brokerage buyers. That was four less than the preceding year and represented 9.9% of total deals in 2024, compared to 13.7% in 2023.

As insurance brokerages diversify themselves from their competition, their goal of becoming comprehensive, one-stop solution providers is crucial. MarshBerry anticipates that this segment of insurance brokerage buyers will continue to grow.

Of the 35 transactions completed in 2024 by insurance brokers, 29 (83%) were for firms that provide wealth advisory services, a shift from the range of 66% to 72% in 2021 to 2023.

Historically, insurance brokerage firms focused on retirement plan businesses and viewed wealth as a complimentary feature of the deal. However, as these firms have built out their wealth platforms, they have become increasingly comfortable targeting firms with wealth advisory businesses, whether it’s a combined wealth and retirement shop or a stand-alone wealth firm.

The Most Active Buyers Of Wealth Firms In 2024

The top three buyers (Wealth Enhancement Group, Focus Financial Partners, and Waverly Advisors) represented 12.2% of all transactions, while the top 10 buyers accounted for just over 30% of market activity.

Notable Wealth Transactions In 2024

• MAY 8: Wealthspire Advisors acquired Walden Wealth Partners, a female-owned, led, and operated firm established in 2015 with approximately $420 million in assets under management (AUM). Walden specializes in sophisticated financial advisory and investment management services designed for affluent individuals and families. The acquisition enhances Wealthspire’s presence in the Midwest by establishing a new location in the Cleveland metropolitan area.
• JUNE 16: Advent and a unit of ADIA (Abu Dhabi Investment Authority) announced acquiring a minority stake in Fisher Investments, founded by billionaire Ken Fisher, with the minority transaction valued from $2.5 billion to $3 billion. The investment estimates the enterprise value of Fisher Investments to be around $12 billion to $13 billion. Ken Fisher’s estate planning appears to be a major driver of this transaction and seeks to ensure the firm’s long-term independence and operational continuity. Fisher Investments is headquartered in Plano, Texas, and manages $275 billion in assets for over 150,000 clients globally. Advent, known for its private equity investments in the financial services sector, and ADIA, the sovereign wealth fund focused on long-term value, are partnering in this strategic acquisition, as reported by Bloomberg and The Wall Street Journal.
• SEPT. 30: Cerity Partners announced the acquisition of Strategic Benefit Consultants, dba SBC Wealth Management (SBC). Indianapolis, Indiana-based SBC brings over $1.0 billion in AUM to the table across a diverse network of high-net-worth clientele. SBC now operates under the Cerity Partners brand.
• NOV. 25: CI Financial announced an agreement with Mubadala Capital, the alternative asset management arm of Mubadala Investment, to take CI private in a transaction valued at approximately $4.7 billion. The deal includes a cash offer of $32 per share, representing a 33% premium over CI’s last closing price. CI’s management team will remain in place post transaction, and the company will continue to operate independently, including its U.S. subsidiary, Corient. The transaction is expected to close in the second quarter of 2025, pending shareholder and regulatory approvals.
• DEC. 10: Wealth Enhancement Group, a national independent wealth management firm with over $103.2 billion in client assets, acquired VanceGray Wealth Management, an independent RIA based in Bangor and Ellsworth, Maine. VanceGray brings over $409 million in AUM into Wealth Enhancement’s expanding network.

Employee Benefits and Consulting Firm Consolidation Slows

Over the past decade the consolidation of privately held employee benefits and consulting firms has created an imbalance of supply in the market. While 2024 was an active year for the EB segment, the 170 announced transactions was a slight decline from the 178 and 213 announced deals in 2023 and 2022, respectively. The 2024 count represented 20% of all insurance brokerage transactions, down from 22% in 2023.

Despite the decline in activity in 2024, strong interest persists from larger firms looking for a platform EB brokerage or stand-alone business to bolster their EB revenue.

Changes in the insurance brokerage industry are forcing organizations to bolster their expertise, client service delivery, and resources to help clients achieve their EB goals. The job has grown well beyond brokering employer-sponsored health plans to encompass sharing cost containment strategies, delivering HR-related services, managing compliance, and quickly adapting to constant shifts in client needs. Alongside the evolution of clients’ needs, which require investment in resources to stay competitive, EB valuations have continued to increase, driving a large amount of consolidation within the space.

There were 920 transactions from 2020 to 2024, compared to 587 total reported deals from 2015 the 2019, demonstrating rising interest in the EB and consulting space.

EB transactions and overall acquired EB revenue can also fall into the multiline category in most deal tracking. There were several large multiline broker transactions in 2024, most involving businesses with sizable EB revenue. If you include all EB and multiline firms with EB revenue, total year-over-year deal count dropped by 7.7% (379 to 350).

In 2024, the top 10 buyers of EB firms represented 58% of total transactions, compared to 47% in 2023. The top buyer of EB firms was once again Integrity Marketing Group, announcing 30 deals on the year, after announcing 32 in 2023.

One trend in 2024 was larger firm consolidation. The Aon-NFP, Marsh McLennan-McGriff, and Gallagher-AssuredPartners deals all consolidated companies that had focused on acquiring EB firms. This trend of top 100 brokers selling to other larger brokers is expected to continue and could be perceived as shrinking the buyer pool. However, MarshBerry believes there is still enough dry powder and strong demand to meet supply.

International Buyers Reshape European M&A Market

The 560 announced transactions last year in Europe was down approximately 6.8% from the 601 deals recorded in 2023. However, 2024 set a new record for the number of countries involved and the geographic spread of deal activity. Significant M&A activity among insurance brokers has been reported in at least 40 of the 51 recognized European countries, often involving major international brokers.

The number of transactions recorded by MarshBerry is likely an undercount, as many deals involving smaller brokers in Europe go unreported, making it difficult to include them in the total figures.

The European insurance brokerage landscape, once defined by its strong local roots, is undergoing a profound transformation. A fragmented, nationally focused industry is becoming increasingly international and consolidated. More brokers than ever are exploring cross-border M&A opportunities as U.S. brokers make their mark and national champions scale up to become global players. PE-backed buyers continue to drive much of this growth, accounting for 64% of all deal activity in Europe in 2024.

U.K. M&A Hits New High

The United Kingdom is the largest insurance market in Europe. M&A transaction activity in 2024 illustrates that, setting a new record with 152 announced deals—one more than 2023. Cross-border M&A remained a key feature of deal making—23 of the 152 deals involved U.S. buyers, with public broker Brown & Brown alone accounting for eight. There were also new U.S. entrants into the market, with Ambac, Novatae Risk Group, and Trawick Insurance Brokerage acquiring U.K. businesses for the first time. They joined first-time buyers of U.K. businesses from Australia and Continental Europe as well.

Continental Europe Becoming M&A Hot Spot

Consolidation of insurance brokers in Europe is no longer concentrated in the British Isles. Across the continent, in all markets where insurance brokers are active, the pressure is on. Here are some highlights:

• Germany has emerged as one of the most promising M&A markets in Europe. This growth is driven by a high proportion of independent brokers and expanding buy-and-build opportunities.
• France continues to attract well-known national brands and hosts the most M&A activity on the continent. In 2024, Groupe Premium emerged as a key player, actively pursuing acquisitions, particularly in the wealth management sector.
• Italy has a relatively small broker market but holds its place as the fourth-largest insurance market in Europe overall. Significant M&A activity in 2024 was driven by both international financial and strategic buyers, reflecting growing interest in the Italian insurance brokerage sector.
• Spain is the fifth-largest insurance market in Europe. This is reflected in the rapidly increasing number of transactions across the Iberian Peninsula, involving not only Spain but also Portugal.
• The Benelux region (The Netherlands, Belgium, and Luxembourg) continues to be a prime destination for M&A activity, serving as the first stop in Continental Europe for many international buyers. Brown & Brown made its first major European retail investment outside the United Kingdom and Ireland last year by acquiring Netherlands-based top 10 broker Quintes.
• In the Nordic market, Swedish brokers Säkra and Söderberg play a leading role in M&A. Supported by financial investors, both have executed numerous acquisitions. From a cross-border perspective, Howden Group was highly active in Denmark in 2024, completing five acquisitions.
• Within the Central Europe region, Switzerland and Austria are both strong and stable insurance markets with well-established insurance broker sectors, attracting international buyers for years.
• Poland, part of the Central Europe region, stands out as a key focus for international buyers. The Polish economy is growing rapidly with an increasingly sophisticated insurance sector.

Projected Trends For Europe In 2025

M&A momentum for European insurance brokerages is expected to remain strong in 2025 and beyond, particularly in countries with a strong broker insurance market and a significant number of independent intermediaries. The market is anticipated to stay highly competitive, driven by an increasing number of active buyers, as private equity firms compete directly with strategic buyers seeking growth through small and mid-market acquisitions.

Robust strategic growth planning, with an eye on M&A, is crucial to pursuing opportunities in this fast-changing environment. It’s an exciting time for the industry, and it will be interesting to see how the battle for the European market will play out.

The Road Ahead

Boosted by a strong economy, improved profitability and underwriting results, and investment returns in 2024, the insurance distribution industry and M&A activity in 2025 look to maintain momentum and remain active.

However, much will depend on the overall health of the U.S. economy, including how the Fed handles monetary policy and how President Donald Trump’s policies on trade, immigration, and regulation impact inflation, business, and the labor market. There’s also the question on the scheduled expiration of key tax-reform provisions of the Tax Cuts and Jobs Act. Without executive action, that could impact personal income and capital gains taxes.

For now, buyers and sellers in the insurance brokerage space see opportunities for partnerships with valuations remaining at or near their elevated levels. However, any increase in supply and/or demand will be influenced by different factors.

For buyers, the primary factors driving activity will be further Fed interest rate cuts and increased access to debt. Today, the debt markets are friendlier to buyers than they were a year ago, and many are in the market repricing their current debt stack to more favorable interest rates. This movement will create additional cash flow and flexibility for buyers to be aggressive on acquisitive growth.

For sellers, the drive to provide better client service remains a theme across the independent landscape. The end client continues to demand more from its brokerage, including access to industry knowledge, data and analytics, loss control and claims services, or even broader solutions (e.g., human resources consulting, retirement planning, individual wealth). These are becoming the cost of entry to remain competitive. Independent firms are weighing their options regarding whether they need to build these services on their own or partner with a firm that has already made those investments.

In 2024, a number of large brokers were acquired by other, larger brokers. A few more similar deals may follow this year. But this will not deter activity in the marketplace. Buyer demand remains strong and still eclipses seller supply by two to three times. Sellers need to contemplate how they will remain competitive in a market that is becoming more focused on value-added services and data intelligence to help the end client.

Whether a firm chooses to partner with another organization or continue building for long-term independence, the decision requires thoughtful consideration and analysis. As capital becomes more affordable, the potential for growth becomes more of a reality. If a firm is not committed to continual double-digit organic growth outside of a hard market, it will have a tough time keeping up with the high valuations that others are getting. Don’t sit back and watch.