Broker M&A Down Slightly in Q1 as Some Buyers Take ‘Strategic Pause’ *Centurion Insurance AFS*

The 22 acquirers that make up the Sica Fletcher Index were involved in 111 agent-broker deals in the first quarter 2024, totaling $284 million in revenue.

That is a 21% drop in revenue from what was acquired during the same quarter a year ago when 116 deals were made, said Sica Fletcher, an insurance industry-focused advisory firm who added that many of its index members “demonstrated steady increases in Q1 2024 deals compared to Q1 2023, while others have taken a strategic pause.”

“Investors continue to be more selective when evaluating acquisition opportunities, with many well-funded buyers in the market still mindful of the high cost of capital,” the firm said in its Q1 2024 Agency & Broker Buyer Index. Sica Fletcher said the index accounts for 71% of deal activity in the first quarter.

BroadStreet Partners led the index during the first quarter for the second consecutive year, while Gallagher matched its total of 10—tied with Hub International.

The 4 public companies in the index made 14 acquisitions while private-equity backed buyers made 97.

Related: OPTIS: Insurance Agency M&A Down 18% in Q1 2024

Topics
Mergers & Acquisitions
Agencies