The number of mergers and acquisitions slid 6.9% through the first half of 2024, but the size of those deals fell much further compared with the first half of last year, according to a report Tuesday from Sica Fletcher LLC, an insurance M&A advisory firm.
The Sica Fletcher Agency & Broker Buyer Index tracks 22 of the most active acquirers in the insurance brokerage sector, the report said.
Deals in the index accounted for 70% of all deal activity in the agency and brokerage sector through June 2024, Sica Fletcher said.
Those firms tracked in the index acquired 242 agents and brokers through June 2024, down from 260 through June 2023. “Investors continue to be more selective when evaluating acquisition opportunities,” the report said.
Deal sizes slipped more precipitously, however, as buyers acquired $635 million of agency and broker revenue, approximately 45% less than what was acquired through June 2023, the report said.
The average revenue of acquired agencies through June 2024 was $2.63 million, 41% less than the $4.46 million through June 2023.
BroadStreet Partners Inc. was listed as the most active acquirer with 46 deals, compared with just 26 in the year-ago period. Hub International Ltd. was the second-most-active acquirer with 27 deals, off one from 28 a year ago; and Inszone Insurance Services Inc. was third at 24 deals compared with 18 a year ago, according to report data.
