There were 339 mergers and acquisitions among insurance agents and brokers during the first half of 2021, an increase of 17.7% compared to the same period last year and the highest record amount in the first half, according to a report from Optis Partners LLC.
Grand Rapids-based Acrisure LLC was the largest acquirer with 31 first-half transactions, which was approximately 20% below its five-year average for the period, followed by PCF Insurance Services in Woodland Hills, California, with 22; AssuredPartners Inc. of Lake Mary, Florida, with 21; Columbus, Ohio-based BroadStreet Partners Inc. with 19; and Hub International Ltd. with 17, said Optis.
The Chicago-based investment banking and consulting firm tracks M&A activities among U.S. and Canadian agents and brokers who sell real estate / accident insurance, employee benefits, or both.
Private equity backed buyers and buyers with significant external financial support continued to dominate the brokerage and M&A sector and accounted for 66% of all first half offers, slightly in the first half of 2020, followed by 24% of private brokers, an increase from 1
"In some ways, the M&A history is repeated: an increasing number of private equity-backed buyers with access to large amounts of cheap capital continue to drive the pace of M&A and valuations at high times. A more interesting development is the beginning of a increase in privately owned agency activities, as they now account for a quarter of the completed transactions, says Dan Menzer, partner at Optis, in the report.
Real estate agents / accidents were involved. 188 or 55% of transactions.