After years of aggressive consolidation across the insurance distribution industry, merger and acquisition activity slowed considerably during the first half of 2026. However, the latest data from OPTIS Partners suggests the decline in transaction volume does not mean buyers have lost interest in insurance agencies. Instead, the market appears to be becoming more selective.
According to OPTIS Partners’ North American Agent & Broker Merger & Acquisition Update, 292 insurance agency transactions were announced during the first six months of 2026. That represents a 15% decline from the 342 transactions recorded during the same period in 2025 and marks the slowest first half since 2016. The trailing 12-month total fell to 646 transactions, its lowest level since the first quarter of 2019.
Private Equity Still Drives the Market
Although overall transaction volume has declined, private equity remains the dominant force in insurance distribution M&A.
Private-equity-backed and hybrid buyers accounted for approximately 76% of acquisitions during the first half of 2026. OPTIS identified 68 unique buyers during the period, including 37 private-equity-backed organizations and 21 privately held buyers. Six of the private-equity-backed firms and nine privately held organizations announced their first acquisitions.
The most active acquirer was BroadStreet Partners, completing 37 transactions during the first half, followed closely by Inszone Insurance Services with 33. ALKEME and World Insurance Associates each reported 15 acquisitions.
At the same time, several historically aggressive buyers have reduced their acquisition activity. OPTIS reported that Hub International, Keystone Agency Partners, HighStreet Partners and Acrisure were among the active buyers whose deal counts declined by more than 50% compared with the first half of 2025.
P&C Agencies Remain the Primary Acquisition Targets
Property and casualty agencies represented the majority of businesses sold during the period. OPTIS recorded 198 P&C agency transactions, accounting for approximately 68% of all deals.
Another 31 transactions involved employee benefits agencies, while 25 involved firms combining P&C and benefits operations. The remaining 38 transactions included businesses such as MGAs, TPAs, life insurance organizations and other insurance distribution companies.
These figures demonstrate that while buyers may be completing fewer transactions, independent P&C agencies remain highly relevant acquisition targets.
Quality Is Becoming Increasingly Important
Perhaps the most important takeaway for agency owners is that declining transaction volume does not necessarily translate into dramatically lower valuations.
OPTIS Managing Partner Tim Cunningham indicated that valuations remain high for larger, well-run organizations, although pricing has softened for some other agencies. The number of high-quality agencies available for acquisition also remains limited.
That aligns with a broader shift toward more disciplined acquisition strategies. Buyers are increasingly evaluating organic growth, operational performance, technology infrastructure, specialization and the ability of an acquisition to create long-term value.
For independent agency owners, that distinction matters.
A business with strong financial performance, documented processes, reliable organic growth and a diversified book may continue attracting significant buyer interest even in a slower M&A environment. Agencies with weaker fundamentals may find buyers less willing to overlook operational shortcomings simply to complete another transaction.
Planning Ahead Can Protect Agency Value
OPTIS expects many smaller agencies without viable internal perpetuation plans to enter the market during the next five to ten years. That makes advance planning increasingly important.
Agency owners considering a sale should not wait until they are ready to retire before preparing their business. Improving profitability, strengthening management, documenting procedures and developing a clear perpetuation strategy can all contribute to a stronger position when the time comes to evaluate opportunities.
The first half of 2026 may signal a more measured era for insurance agency M&A. Buyers are still active and capital remains available, but quality increasingly matters. For agency owners, the message is clear: preparing early and building a stronger business may ultimately prove more valuable than trying to predict the perfect time to sell.
Information for this article was provided by OPTIS. Views and claims expressed in this article are those of the source company and do not necessarily reflect the views of AgencyEquity.com. This article may have been edited with the help of AI.
