Insurance brokerage M&A is becoming increasingly divided between multibillion-dollar strategic transactions and a broader market in which acquisition activity is declining.
OPTIS Partners recorded 695 North American agent and broker transactions in 2025, down 12% from 2024 and 24% below the previous five-year average. Private equity-backed brokers completed 10% fewer acquisitions, while activity among publicly traded brokers dropped 27%. The number of identifiable buyers also fell for a fourth consecutive year, from 104 in 2024 to 95.
The pattern is visible beyond North America. Only 56 UK insurance distribution transactions were announced through August 2026, 16% fewer than during the same period last year. Several consolidators that previously ranked among the most active buyers have reduced or paused their UK acquisition programs.
The contrast suggests that well-integrated platforms, large middle-market franchises and differentiated specialty firms can still command substantial offers. Less distinctive brokerage groups may face a narrower pool of buyers, particularly when they carry significant leverage or have yet to integrate years of bolt-on acquisitions.
It’s not all downhill, though, as two recent deals illustrate the continuing appetite for prized assets. First, Aon agreed on August 31 to acquire USI Insurance Services for US$17 billion, creating a significantly larger US middle-market platform. Days later, EQT announced a US$2-billion agreement for a majority stake in specialty broker McGill and Partners. Both transactions remain subject to closing conditions.
Igno van Waesberghe (pictured), managing partner at financial services investment firm Aquiline, believes that congestion at the top of the brokerage market could spread through the acquisition chain.
He argued that listed brokers are applying a higher threshold to acquisitions as public valuations come under pressure. Meanwhile, leverage levels at some large private equity-backed platforms may limit further acquisitions or IPOs in the near term.
“There’s a bit of a logjam,” he said. “That also means those big private equity-backed guys are acquiring less. That then trickles down into each segment of the market, where strategic M&A could, in some segments, grind to a halt because there’s no ultimate buyer.”
Aquiline exited US broker Relation Insurance Services and Dutch intermediary Quintes after supporting extensive acquisition programs at both businesses. Relation completed more than 100 acquisitions under Aquiline, while Quintes completed more than 80.
According to van Waesberghe, the next phase of brokerage M&A will place greater emphasis on whether consolidators have created cohesive businesses from their acquisitions.
Some platforms remain collections of separately operated firms with different technology, financial reporting and sales processes. That structure can make them difficult for a listed broker to absorb, particularly when adjusted earnings differ substantially from reported results.
Cultural compatibility and business mix also influence whether an acquisition creates lasting value. Buying firms according to a predetermined EBITDA multiple without examining their client base, carrier relationships or retention risks can leave a consolidator with scale that does not translate into an attractive strategic asset.
Specialty brokerages appear better positioned. McGill reached its US$2 billion valuation through organic growth, specialist recruitment and a unified technology platform rather than a succession of acquisitions. Specialty businesses—including MGAs, wholesale firms and Lloyd’s brokers—accounted for a record 29% of UK insurance distribution deals through August.
Aquiline continues to examine specialist brokerage teams in the US and Europe. Van Waesberghe expects technology to help firms strengthen new-business generation and integrate acquired operations, although competition for AI and technology talent remains a significant constraint.
“At a macro level, I think it’s still a good space,” he said, “but you need to work through a little bit of the pain over the next two years.”
