Insurance Agency Acquisitions Slump in First Three Quarters
Deals for insurance firms in US and Canada fall 19%, OPTIS Partners reports
MINNEAPOLIS, MN / ACCESS Newswire / October 20, 2026 / The pace of insurance agency M&A activity continues to decline in 2026, according to OPTIS Partners, an investment banking and financial consulting firm specializing in the insurance distribution industry.
Firms announced 439 insurance agency acquisitions from January through September, down 19% from the same first three quarters of 2025, the OPTIS Partners database reveals.
In Q3, there were 144 announced transactions, down 27% from 197 recorded in Q3 last year. It was a slight uptick of 3% compared to the 140 announced in the second quarter.
"Deal flow to date in 2026 is slower than we anticipated. Based on conversations we've had and historical trends, we expect Q4 to pick up somewhat but still at a slower pace than prior year-end quarters," said Steve Germundson, a partner of the firm.
Private-equity-backed firms top buyers
OPTIS Partners tracks buyers by four groups: private-equity-backed/hybrid buyers (made up of certain brokers and institutional investors such as family offices, pension funds, and sovereign wealth funds), privately held brokers, publicly held brokers, and all others.
PE/hybrid buyers made up 76% of all acquisitions in Q3 and year-to-date.
During the last four quarters, the most active buyers were:
Although Gallagher, Brown & Brown, and AON made fewer acquisitions, they have strategically acquired very large private-equity-backed firms to buy their way into or at least enhance their position in the middle market, according to OPTIS managing partner Tim Cunningham.
"Most of the private equity-backed platforms still want to make acquisitions but are facing pressure to prioritize deleveraging, integration, and exits over sheer volume. This pulls deal counts down even as capital commitments stay high," he said.
P&C agencies were main sellers
Sellers are placed in four categories: property/casualty agencies, employee benefits agencies, combination P&C/benefits agencies, and all others. The latter includes TPAs and MGAs; agencies solely focused on life insurance, investment or financial management or consulting; and other insurance-distribution businesses.
P&C sellers accounted for 292 transactions (67% of the total), P&C/benefits agencies sales totaled 38 (9%), and there were 46 sales of benefits agencies (10%). All other sellers accounted for 63 deals (14%).
Sellers face a more competitive market
"Valuations of agencies with producer-led organic growth, strong benefits books or specialty niches should continue to hold steady," Cunningham said. "Agencies whose growth came mainly from rate increases will see lower multiples and larger earnouts. If public broker multiples stay depressed, deal pricing is likely to adjust downward."
Germundson added: "As buyers continue to scrutinize their acquisition targets more closely, it's ever more important for agency owners who are planning to sell in the next few years to start taking concrete steps now to make their agency a more attractive target."
The full report can be read at https://optisins.com/wp/2026/10/q3-2026-ma-report/.
About OPTIS Partners
Focused exclusively on the insurance-distribution marketplace, Minneapolis-based OPTIS Partners ( www.optisins.com) offers merger & acquisition representation for sellers and buyers. It also provides appraisals of fair market value; financial performance review, including trend analysis and internal controls; and ownership transition and perpetuation planning.
Contact: Steve Germundson, OPTIS Partners, [email protected], 612-758-0598
Tim Cunningham, OPTIS Partners, [email protected], 312-543-5425
Henry Stimpson, Stimpson Communications, [email protected]
SOURCE: OPTIS Partners