Following a record year in 2021, insurance agency consulting firm Marshberry said the amount of mergers and acquisitions in the insurance industry dropped by more than 200 in 2022 but when all is said and done, the year could still be the second highest on record.
There were 708 M&A deals in 2002, down from 924 in 2021, according to Marshberry.
“When the dust settles and all deals are announced, it will likely be the second highest year on record behind 2021, eclipsing the 2020 total of 712 announced transactions” even with record inflation, a slowing economy, labor shortages, and the Federal Reserve raising interest, Marshberry said.
More than 74% (525) of deals in 2022 were backed by private capital buyers. Independent agencies accounted for 83 M&A transactions.
Marshberry said the top 10 most active buyers accounted for 345 of the 708 transactions (48.7%), while the top three – Acrisure, Hub International Limited, and Peter C. Foy & Associates Insurance Services – accounted for 19.8% of total transactions last year.
Marshberry added that valuations in the insurance distribution sector for 2022 were “still very strong” and, looking ahead, the firm said there are “lots of firms looking to invest in this space and valuations continue to remain high, despite a leveling playing field and rising cost of debt.”
Topics Mergers & Acquisitions
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