Agency-broker M&A declined slightly in the first half of 2024

The 22 acquirers that make up the Sica Fletcher Index were involved in 242 agent-broker transactions in the first six months of 2024, totaling $635 million in proceeds.

That’s a 45 percent drop in revenue from what was purchased in the same period a year ago, said Sica Fletcher, a consulting firm focused on the insurance industry. Deal volume was down from 260 acquisitions completed in the first half of 2023.

“Investors continue to be more selective when evaluating acquisition opportunities, with many well-funded buyers in the market still wary of the high cost of capital,” the firm said in its Q2 2024 Agency & Broker Buyer Index. Sica Fletcher said the index represented 70% of transaction activity in the agent-broker space in the first half of the year.

As in the first quarter, BroadStreet Partners led the SF index in the first half of 2024 with 46 deals. Hub International and Inszone Insurance followed with 27 and 24 deals respectively.

Sica Fletcher said private equity-backed buyers accounted for 87% of M&A deals at the end of June, but “the interest rate environment and strategic acquisitions are causing a slight slowdown for a few platforms.”

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Trends Mergers and acquisitions agencies