Brokerage M&As continue to slow in second quarter

Mergers and acquisitions among insurance agents and brokers declined in the second quarter as some previously active buyers reduced the number of purchases they completed, according to a report released Wednesday by Optis Partners LLC.

There were 146 transactions announced during the second quarter, a 26% decline from the same period last year and 26% lower than the five-year average, the Chicago-based investment banking and financial consulting firm said in the report.

Over the past 12 months, deals among U.S. and Canadian agents, brokers and other intermediaries fell 21% to 739, the report said.

The slowdown, which began last year, has seen several previously very active buyers, such as Acrisure LLC and PCF Insurance Services, pull back from the M&A market. However, that may be changing, said Tim Cunningham, managing partner at Optis.

“While some formerly very active buyers became relatively inactive, it appears that a few are picking up the pace slightly. Others that didn’t slow down in the recent economic downturn indeed have increased their buying pace,” he said.

A full breakdown of first-half M&As is available here and in the latest edition of Business Insurance.