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Home / Insurance / Broker M&A sees 5th straight record year: MarshBerry

Broker M&A sees 5th straight record year: MarshBerry



In 2021, mergers and acquisitions hit a fifth straight record year in the insurance distribution sector, with 798 transactions announced on January 3, 2022, an increase of 12.2% compared to the 2020 announced business total of 711, financial analyst MarshBerry Inc. said on Friday. [19659002] Private equity assisted buyers accounted for 591 of the 798 transactions, 74.1%, and continue to expand their market presence, with total transactions from these buyers increasing at a compound annual growth rate of 14.8% since 2018.

Buyers and investors continue to enter the market. It is a very favorable seller market because there is still more demand than there is quality supply, "said MarshBerry.

That demand helped push up transaction pricing as valuations saw a further increase until the end of the year to over 1

0 times profit before interest , taxes, depreciation and amortization, an increase of 12.9% compared to the advance payment received by sellers in 2020. The total maximum purchase price has increased by more than 11% from year to year 2021.

Independent agencies during the period for 100 offers, or 12.5% ​​of the total number of offers. Although this share is in line with 2020, this part of the total announced transactions has seen a total decrease from the average 2015-2020 of 23.2% of the transactions made by independent agencies.

A major factor that helps to drive transactions is the brokers' decision. to upgrade – with added technologies or services, for example – to meet what MarshBerry says is a growing set of buyers' requirements, or sell out. "The decision to build versus join too many companies to the business table. This dynamic will not go away."

MarshBerry expects business activity to remain robust by 2022, although it may not set another record. if the number of transactions for 2022 will not necessarily overshadow the total for 2021, activity is likely to remain at 2019/2020 levels with somewhere between 650-750 announced transactions. "


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