North American insurance broker M&A activity slows in 2023

M&A deals involving North American insurance brokers as targets decreased about 17% year over year in 2023, even as a single, outlier deal pushed the aggregate transaction value higher.

There were 597 such deals in the North America in 2023, down from 721 in 2022, according to an S&P Global Market Intelligence analysis. The aggregate transaction value hit $19.57 billion in 2023, with Aon PLC's $13.63 billion deal to acquire NFP Corp. accounting for the bulk of that total.

The next largest deal of 2023 involved an investor group consisting of Stone Point Capital LLC, Mubadala Investment Co. PJSC and other coinvestors that acquired a 20% interest in Truist Insurance Holdings LLC from Truist Financial Corp. for $1.95 billion.

In February this year, Truist announced that it agreed to sell its remaining stake in Truist Insurance Holdings to the same investor group. The all-cash transaction values Truist Insurance Holdings at an implied enterprise value of $15.5 billion.

The third largest deal of 2023 involved an investor group consisting of Dragoneer Investment Group LLC, SkyKnight Capital LP, Genstar Capital LLC and employee shareholders that acquired a stake in AmWINS Group Inc. from more than 375 AmWINS employee shareholders and the Public Sector Pension Investment Board for $1 billion.

Reduced appetite

When compared to the three years prior, the decline in total deals in 2023 was largely due to a drop in deal activity by Acrisure LLC and Peter C. Foy & Associates Insurance Services LLC, according to an analysis by S&P Global Market Intelligence. Neither company responded to requests for comment regarding their M&A strategy.

While Acrisure continued to rank among the most acquisitive US insurance brokers in 2023, its deal activity was far below its annual pace in the previous four years. Acrisure's approximately 300 transactions between 2019 and 2023 were the most by any broker in the five-year period under analysis.

Of the 3,498 deals during that time period, 3,353 did not have disclosed valuation.

Deals valued at more than $50 million also fluctuated in frequency during the five-year period but hit a high in 2023. There were at least 18 deals valued at more than $50 million in 2023, up from 12 in 2022 and 13 in 2023.

Inszone ramps up

One of most active acquirers last year was California-based Inszone Insurance Services Inc. The company's annual acquisition activity grew exponentially between 2019 and 2023.

In 2024, Inszone has announced the acquisition of J.B. Martin Insurance Agencies, located in Albuquerque, NM, and more than 10 other deals.

"Inszone Insurance is expected to announce several significant acquisitions in the upcoming months as part of its ongoing efforts to expand its footprint on a national scale," the company wrote in a news release.

The company did not respond to a request for comment regarding the growing frequency of its acquisitions.