Insurance Brokerage M&A 2026: Momentum, Multiples, and Market Outlook

In 2025, the insurance brokerage M&A market remained resilient despite an evolving economic and regulatory environment.

In an April 16 webinar, “Insurance Brokerage M&A 2026: Momentum, Multiples & Market Outlook,” Sica | Fletcher will discuss signs of strain in the large-deal segment, creating ripple effects throughout the broader M&A landscape. Specifically:

• What does this momentum signal for insurance broker M&A activity in the year ahead?
• Which trends are taking shape, which core fundamentals remain steady, and what potential risks may be emerging?

Here are some key findings that will be explored further in the webinar.

1. M&A Activity Remains Elevated and Valuations Have Stabilized

• Total insurance brokerage transactions declined to 714 deals in 2025, down from post‑pandemic highs but still well above pre‑2020 levels.
• Average EBITDA multiples for deals greater than $1 million of EBITDA reached roughly 11.4x in 2025, reflecting approximately 20% expansion since 2020 and relative stabilization after rapid multiple growth in prior years.

2. Structural Valuation Support Remains Intact

• Property and casualty premium growth averaged approximately 9.5% CAGR from 2021–2024, continuing to support top‑line expansion, albeit at a moderating pace.
• Buyers benefit from multiple arbitrage, acquiring agencies at lower multiples and recapitalizing platforms at higher multiples—often generating substantial enterprise value uplift.
• Elevated buyer demand persists, with 50+ private equity‑backed and public acquirers actively pursuing scale.

3. Early Signs of Stress Are Emerging at the Platform Level

• Large, high‑profile transactions in late 2024 and early 2025 revealed valuation compression when viewed on an adjusted basis, highlighting sensitivity to growth deceleration and leverage. 
• Public broker equity performance lagged the S&P 500 during portions of 2025, signaling investor concern around interest rates, slowing organic growth, and capital structure complexity.
• Larger brokers show greater exposure to declining premium growth, while midmarket agencies remain comparatively resilient.

For more details, including discussion about how factors besides headline multiples can influence purchase price, key M&A financing conditions, and Sica | Fletcher’s outlook for 2026 insurance brokerage deals, register for the webinar here.