Insurance Brokerage M&A Continues to Surge in 2024

Hub International, active in retirement plan deals, completed 48 transactions during the year, MarshBerry reported.

 By the close of 2024, there had been 849 announced insurance brokerage M&A transactions in the U.S., a 5.2% increase compared with deals closed in 2023, according to MarshBerry’s “Q4 2024 U.S. M&A Market Report.” 

That total made 2024 the third-highest year on record for M&A transactions, according to MarshBerry, with momentum continuing into 2025 as multiple deal closings were delayed into January. More than two-thirds (70%) of last year’s transactions involved private capital-backed buyers, showing the continued increased interest in the market. In 2019, private capital backed buyers in 59.3% of transactions. 

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According to the report, “high performing firms with strong organic growth and high margins” were in demand during 2024. With enough supply of those firms, valuations held steady and increased to an average of 11.22 times earnings before interest, taxes, depreciation and amortization. MarshBerry reported that this is the first time the average base purchase price has exceeded 11x EBITDA. Platform firms for 2024 are holding at even higher levels, averaging 14.02x EBITDA at closing. 

In 2024, 10 buyers accounted for 43.3% of all announced transactions, and the three most active buyers (BroadStreet Partners Inc., Inszone Insurance Services Inc. and Hub International Ltd.) accounted for 21.6% of the 849 total transactions in 2024. 

Of the 10 most active insurers dealing in retirement plans, Hub International completed 48 transactions during the year, Arthur J. Gallagher & Co. completed 25 and World Insurance Associates LLC completed 24.  

MarshBerry expects the M&A market to remain active in 2025, as buyer demand continues to eclipse seller supply. For 2025, independent firms cannot rely on rate and market exposure to drive their top line and must focus on business growth, according to the report. 

“Buyer demand is still very strong, and sellers continue to contemplate how they will remain competitive in a market that is becoming more focused on value added services and data intelligence to help the end client,” the report stated.

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