Deals for insurance firms in US and Canada decline 15%, OPTIS Partners reports, but valuations stay high for best agencies

MINNEAPOLIS, MN / ACCESS Newswire / July 22, 2026 / The pace of M&A activity slowed significantly in the first half of 2026 versus 2025, but the downward trend is likely near the bottom, according to OPTIS Partners, an investment banking and financial consulting firm specializing in the insurance distribution industry.

Firms announced 292 insurance agency mergers and acquisitions in the first half, down 15% from the first half of 2025, the OPTIS Partners database reveals. It was the slowest start since 2016.

“Several of the big, most active buyers over the past several years have significantly cut back activity,” said Steve Germundson, a partner of the firm. “But the buying pace has increased for emerging private equity firms and those anticipating a recapitalization or sale in the near future.”

Private-equity-backed firms top buyers

OPTIS Partners tracks buyers by four groups: private-equity-backed/hybrid buyers (which besides brokers also include institutional investors such as family offices, pension funds, and sovereign wealth funds), privately held brokers, publicly held brokers, and all others.

Private equity-backed buyers accounted for 76% of all acquisitions in the first half.

Some 68 unique buyers were active in the first six months. Thirty-seven were private-equity-backed, including six that announced their first deal. Twenty-one were privately held, with nine entering the market for the first time.

BroadStreet Partners and Inszone Insurance Services continued to top all buyers with 37 and 33 purchases, respectively. ALKEME and World Insurance Associates each reported 15 deals. All four firms are private-equity-backed buyers.

The most active buyers in the first half of 2025 that cut back acquisitions by more than 50% included Hub International, Keystone Agency Partners, HighStreet Partners, and Acrisure.

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 198 transactions (68% of the total), P&C/Benefits agencies sales totaled 25 (9%), and there were 31 sales of benefits agencies (11%). All other sellers accounted for 38 deals (13%).

Valuations will remain high for best agencies – others should take steps

“Despite this challenging environment, we see valuations remaining high for larger, well-run firms and softening some for others,” said OPTIS managing partner Tim Cunningham.

Currently, there are fewer sellers, especially high-quality agencies. However, a large number of firms, mostly small with no ability to perpetuate ownership internally, will be sold over the next five to ten years, he added.

“Agency owners considering a sale of their business sometime in the next five years should develop a plan now and start taking the necessary steps that will maximize agency value,” Germundson said.

The full report can be read at optisins.com/wp/2026/07/h1-2026-ma-report.

About OPTIS Partners

Focused exclusively on the insurance-distribution marketplace, Chicago-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, germundson@optisins.com, 612-758-0598

Tim Cunningham, OPTIS Partners, cunningham@optisins.com, 312-543-5425

Henry Stimpson, Stimpson Communications, Henry@StimpsonCommunications.com

SOURCE: OPTIS Partners