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The pace of insurance agency mergers and acquisitions picked up during the third quarter of 2025 but as of Sept. 30, M&A is down 7% this year compared to last year.

According to investment banking and financial consulting firm OPTIS Partners, there were 520 insurance agency deals during the first three quarter of 2025, with 188 deals in Q3 2025, up 5% from Q2 2025 but down 13% from the same period last year.

counted 741 transactions in the last 12 months.

Steve Germundson, a partner at the insurance-industry focused, Minneapolis-based firm, said it expects M&A activity in the last three months of 2025 to be “equal to or slightly below Q4 2024, thus continuing the trend of the last three years.”

Property/casualty insurance agencies are the primary sellers, accounting for 336 transactions, or 65% of the total. Continuing a long trend, private equity-backed/hybrid brokers dominated deal activity, with 72% of all transactions as of Sept. 30. PE firm Broadstreet Partners led all buyers with 57 transactions, down from 72 as of Sept. 30 a year ago.

“There are interesting dynamics underway. A few new investors are in the market for the first time,” said OPTIS managing partner Timothy J. Cunningham. “However, there are fewer active buyers among both private-equity and privately owned categories.”

Other than brokers like Broadstreet, buyers now include family offices, pension funds, and sovereign wealth funds.

All but one (Leavitt Group) buyer in the top 10 most active are private equity/hybrid brokers. Alera Group and HighStreet Partners picked up the pace in deals the most over the last 12 months, OPTIS said. Hub International and Inzone Insurance Services have also been active as of Sept. 30 with 38 and 29 deals, respectively.

Topics Mergers & Acquisitions