Insurance M&A Deals Increase in 2019 Q3

The number of mergers and acquisitions (M&A) among insurance brokers and agencies continued its upward climb in the third quarter of 2019, with 451 transactions announced as of September 30, 2019, according to a report by MarshBerry Capital Inc. This number exceeds the 429 deals recorded at the same point in 2018 and the 418 recorded in 2017.

In comparing publicly announced deals in the US, Hub International Limited has recorded the largest number of transactions in 2019 with 28, followed by Broadstreet Partners, Inc. and AssuredPartners, Inc. with 26 and 25, respectively. Overall, the top 20 buyers represent 59.9 percent of all transactions year to date. MarshBerry states that historically, a low percentage of transactions have been announced publicly, but the firm believes this number has grown to more than 50 percent.

Phil Trem, President of Financial Advisory at MarshBerry, noted that demand is high and it does not appear that the market will slow down. In its own report, professional services firm PricewaterhouseCooper also found that fourth-quarter indicators suggest that transactions will continue and the year will experience a strong end.