Insurance Agency M&A Statistics through First Quarter of 2018

Major 2018 Broker Transactions

Observations:

• 24% reduction in deal count from Q1-2017 not indicative of overall M&A activity
• 142 transactions in the quarter is 4th highest quarterly total, behind Q1-2017, Q2-2017 and Q4-2017 

• 36 announced Private-Buyer transactions 3rd highest quarterly total 

• No obvious impact from 201D7 tax reform Act 

• Buyers remain very aggressive on valuations, and Sellers continue to come out of the woodwork

Explanation and sources of data:

Data is for U.S. and Canadian transactions in the insurance distribution sector for both retail and wholesale producers, including managing general agencies/managing general underwriters (MGA/MGU). These agencies and brokers provide property/casualty insurance, employee benefits, or any combination thereof. 

Data for reported and announced transactions have been obtained from various sources, including press releases, trade press articles, company websites and direct communications with buyers.   

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OPTIS Partners, LLC is a boutique investment banking and consulting firm with offices in Chicago, focused exclusively in the insurance distribution marketplace. We provide buy-side and sell-side M&A services, ownership succession planning, fair market valuation and related consulting services. OPTIS was ranked as he fifth most active agent-broker M&A advisory firm in 2014 and 2015 by SNL Financial.

This analysis was prepared by Timothy J. Cunningham, managing director, and Daniel P. Menzer, senior partner. 

To learn more about OPTIS Partners LLC, please visit their website.