By Doug Bailey
After a rocky stretch and a bit of pandemic-era belt-tightening, the insurance brokerage world came roaring back to life in 2024. Fueled by a flood of private equity money and a handful of blockbuster acquisitions, the industry posted its third-most active M&A year on record, according to MarshBerry’s latest report. And this year might end up even bigger.
All told, there were 847 announced transactions in the U.S. last year — up 5% from 2023. But it was not just the volume of deals that caught attention, it was their enormous size.
Arthur J. Gallagher’s $13.45 billion takeover of AssuredPartners, Aon’s $13 billion purchase of NFP, and Marsh McLennan’s $7.75 billion scoop of McGriff Insurance Services all signaled something bigger was happening. These were not just firms buying up smaller shops — these were giants facing off and reshaping the landscape.
“It’s not just consolidation for consolidation’s sake,” said MarshBerry CEO John Wepler. “Each of these deals reflects a bigger strategic bet on what the future of the industry looks like.”
Private equity dominates M&As
The continued dominance of private equity was one of the clearest trends outlined in the report. A full 70% of all deals in 2024 involved private capital–backed firms, highlighting a trend that’s been building for years.
These weren’t one-off transactions either — many of these firms are still in full acquisition mode. The top three buyers alone — BroadStreet Partners, Inszone Insurance, and Hub International — handled nearly a quarter of all the year’s deals. And between them, they closed 184 acquisitions, MarshBerry reports.
Private equity firms raised an estimated $64 billion in high-yield debt to fuel this expansion.
Independent firms held their own with 163 deals, up from 126 the year before. Many are rethinking their futures — and in some cases, their ownership structures, MarshBerry said. Two of the most active independents in recent years, Leavitt Group and The Woodlands Financial Group, both transitioned out of the “independent” category in 2024 after taking on private equity or going public.
Public brokerages account for few deals
Public brokerages, while still active, continue to lose ground. They accounted for only 6.7% of M&A deals. Arthur J. Gallagher stayed the most acquisitive among them, with 25 U.S. transactions. Marsh McLennan was not far behind, more than doubling its 2023 tally.
Banks, meanwhile, headed for the exits. With only 10 acquisitions last year — matched by 10 divestitures — banks now make up just 1% of the M&A landscape, the research found. The high-water mark was 21.7% back in 2007.
It was not just appetite driving all this M&A activity — conditions were ripe.
The U.S. economy fared far better than expected in 2024. GDP stayed strong, inflation cooled off, and unemployment hovered around 4%. With the Federal Reserve beginning to cut interest rates again, dealmakers saw their moment.
On Wall Street, major indices surged, with the Nasdaq jumping 28.6% and the S&P 500 up more than 23%. The tech sector, AI buzz, and the prospect of lower rates all helped stoke the fire.
For the insurance sector itself, it was a much-needed return to profitability. After suffering a $32.1 billion underwriting loss in 2023, the property and casualty industry posted a $4.1 billion gain through the third quarter of 2024. The combined ratio — a measure of underwriting profitability — dropped below 100 again, landing at 97.5.
That said, hurricanes Helene and Milton made landfall late in the year, so final figures could still shift. Still, it’s clear that insurers are adjusting to the “new normal” of frequent catastrophes, MarshBerry noted. The excess and surplus lines market, which thrives on tough-to-insure risks, grew to 20% of all P&C premium — double its share from a decade ago.
Specialty firms remain hot targets
Specialty insurance firms, with their focus on high-margin, niche markets, remained hot M&A targets — even if deals dropped by 33% from 2023. The reason was not a lack of interest — it was a lack of supply. There just aren’t many quality firms left on the market, the report said.
Private equity continued to dominate this segment, too. Integrity Marketing Group led all specialty buyers for the fifth straight year. And big brokerages like AmeriLife and Ryan Specialty kept shopping, picking up platforms with unique expertise and strong distribution.
U.S. firms also kept their eyes abroad. International deal activity continued to climb, with U.S.-based buyers increasingly targeting Europe and beyond. Brown & Brown alone made 16 cross-border acquisitions last year.
If early 2025 data are any sign — and MarshBerry says it is — this year could be even bigger for M&As. Deal volume was already up 25% through the first quarter.
But the tone could be different. With the biggest players combining, the competitive pressure on smaller firms is increasing. That means more focus on value-added services, tech platforms, and specialization. For those not equipped to build it all in-house, selling may look more attractive than ever.
“We’re entering a more volatile, but opportunity-rich environment,” said Wepler. “The firms that know their niche and know their value will be the ones that thrive.”
For everyone else, the message may be simple: partner up or get left behind.
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Doug Bailey is a journalist and freelance writer who lives outside of Boston. He can be reached at [emailprotected].
