Insurance Agency Acquisitions Fall to Eight-Year Low
The U.S. insurance brokerage market saw deal volume drop by 19% through the third quarter of 2026.
Updated on Oct. 21, 2026 in Insurance
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U.S. insurance agency acquisitions reached an eight-year low through the third quarter of 2026, totaling 439 announced transactions. This represents a 19% decline compared to the same period in 2025 as the market shifts away from high-volume growth.
Why it matters
Private equity platforms are deprioritizing aggressive acquisition strategies to focus on integration, debt reduction, and eventual exits. This shift has narrowed the active buyer pool to 82 unique firms over the past year.
High-performing agencies commanded an average base price of 14.22 times EBITDA in the second quarter of 2026, while non-tier-one firms averaged 11.57 times. The top 10% of acquirers were responsible for 55% of all closed deals.
The players
OPTIS Partners
This Chicago-based firm provides specialized financial and operational consulting services to insurance agencies and brokerages.
The Baldwin Group
Headquartered in Tampa, Florida, this insurance distribution firm recently underwent a significant take-private transaction valued at $7.7 billion.
The details
Private equity-backed and hybrid buyers continue to dominate the sector, accounting for 76% of all announced transactions. While deal volume has slowed, the market remains concentrated, with only eight firms managing to close 20 or more transactions during the trailing 12 months.
Timeline
Q2 2018 marked the previous low point for 12-month deal counts.
2019-2021 was a primary acquisition window for firms now reaching hold limits.
Q2 2026 provided the basis for recent valuation multiple reporting.
Q3 2026 saw the end of the current period of transaction declines.
Market Dynamics
The current market contraction mirrors the 2018 insurance brokerage acquisition slowdown by reaching an eight-year low in transaction volume. This transition signals a broader structural shift where firms prioritize operational deleveraging over the rapid expansion seen in previous years.
Investors in insurance brokerage platforms should anticipate a shift toward slower, more disciplined capital deployment as firms focus on existing portfolio integration. This environment may favor established, high-performing agencies that can demonstrate strong organic growth over those reliant on acquisition-fueled scaling.
The takeaway
The insurance brokerage sector is maturing as capital providers shift their focus from rapid acquisition to internal efficiency and debt management. Future market activity will likely center on larger recapitalizations rather than the high-volume purchasing patterns of the recent past.
Further reading
For more information on trends in the sector, visit United States Insurance.
Source note: This article includes information reported by Insurance Business.
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