.png){kind=logo}
Q1 2024 Agency and Broker Buyer Index Reveals a Dynamic Landscape for Insurance M&A
NEW YORK, NY - May 13, 2024 - Sica | Fletcher releases the Q1 2024 Agency & Broker Buyer Index. 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 Sica | Fletcher Index is the leading report on mergers and acquisitions within the insurance brokerage sector. Leveraging self-reported data from 22 prominent agent and broker acquirers, the Index accounts for 71% of all deal activity in the agency and brokerage space in Q1 2024.
According to the report, SF Index members acquired 111 Agents/Brokers last quarter, totaling $284M in agency and broker revenue (approximately 21% less than what was acquired in Q1 2023). In terms of deal volume, BroadStreet Partners led the group during Q1 2024 for the second consecutive year.
Many SF Index Members demonstrated steady increases in Q1 2024 deals compared to Q1 2023, while others have taken a strategic pause. The shift in buyer rotation year-over-year continues to shape the dynamic insurance M&A landscape.
Private Equity-backed buyers retain their stronghold on M&A activity with 87% of Q1 2024 Index transactions, even as the interest rate environment and strategic acquisitions continue to slow down a handful of platforms.
“Despite the reduction in deal activity in Q1 2024, Sica | Fletcher’s Agency & Broker Buyer Index reveals that many Index Members still achieved an increase in deals year-over-year,” said Managing Partner Mike Fletcher. “The complexity of transaction activity amidst the market’s high cost of capital reinforces the importance of engaging with a strategic financial advisor.”
To view the buyer rankings by deal volume, details on private equity activity, and more, download the Q1 2024 Sica | Fletcher Agency & Broker Buyer Index here.
###
About Sica | Fletcher: Sica | Fletcher is a strategic and financial advisory firm focused exclusively on the insurance industry. The firm was founded in 2014 by Michael Fletcher and Al Sica, two of the industry's leading dealmakers who have advised on over $17.5 billion in insurance agency and brokerage transactions since 2014. According to S&P Global, Sica | Fletcher ranked as the #1 advisor to the insurance industry for 2017-2024 YTD in terms of total deals advised. Learn more at SicaFletcher.com.
Contact: Mike Fletcher
Managing Partner, Sica | Fletcher