In 2022, most pundits forecasted 2023 to be a dreadful year for insurance brokerage M&A. The industry is dominated by private equity, which uses lots of leverage to drive investment returns, and there was an expectation that rising interest rates and higher financing costs would taper deal activity. However, most of us turned out to be wrong.

While transaction volume in 2023 declined slightly, valuations remained elevated as the same inflation caused rising rates and a sharp rise in insurance premiums due to the proliferation of buyers, helping offset some of the financing costs. Strong revenues have also led to increasing demand from more buyers.

These trends have continued into 2024, and while M&A activity remains strong, the growing number of buyers and deal structures have made the market increasingly complex. Download the whitepaper to learn more.