Insurance Agency Acquisitions Drop to Eight-Year Low
Brokerage owners face fewer buyers and a shift toward integration as deal volume falls 19% through the third quarter.
Updated on Oct. 21, 2026 in Insurance
Live Poll
Do you believe the acquisition of local insurance agencies by large investment firms benefits your community?
Insurance agency acquisitions in the U.S. fell to an eight-year low through the third quarter of 2026, with only 439 deals announced during the first nine months. This 19% drop compared to the same period in 2025 marks a shift as private equity firms prioritize internal integration over new purchases.
Why it matters
The slowdown reflects a pivot by major buyers toward deleveraging and exits rather than aggressive expansion, signaling a maturing market for agency owners. As the buyer pool consolidates to just 82 active firms, price gaps between high-performing and smaller agencies are becoming more pronounced.
Transaction volume hit 439 acquisitions through Q3 2026, a 19% decline compared to 2025. While high-performing agencies still command base prices averaging 14.22 times EBITDA, the market is now dominated by the top 10% of acquirers, who closed 55% of all deals.
The players
Aon
A global professional services firm that provides risk, retirement, and health solutions and acts as a major insurance industry acquirer.
The Baldwin Group
A Tampa-based insurance brokerage firm recently involved in a major take-private transaction.
The details
Private equity-backed and hybrid buyers, responsible for 76% of transactions, are moving away from high-volume strategies. Firms are instead focusing on integrating existing portfolios and managing debt loads as they reach previous hold limits. This has resulted in a narrowing field of active buyers, with only 82 firms executing deals over the last year.
Timeline
Q2 2018 marked the previous low for the trailing 12-month deal count.
2019-2021 was the primary acquisition window for many firms now hitting hold limits.
Q2 2026 is the period covered by reported valuation multiple data.
Q3 2026 saw transaction volume fall by 27% compared to the same period in 2025.
Q4 2026 is the expected closing window for the Aon USI acquisition.
Money Landscape
The brokerage market is currently retreating from the high-volume growth cycle that defined the 2019-2021 period. This cooling phase brings deal activity back toward the levels last seen during the 2018 market low for agency acquisitions.
Agency owners should anticipate a more selective buyer environment where valuation multiples remain heavily skewed toward firms with proven organic growth. If you are considering a sale, speak with a tax professional or valuation expert to understand how current EBITDA-based pricing affects your specific firm.
The takeaway
The insurance brokerage industry is shifting from rapid acquisition to a focus on operational stability and debt reduction. Business owners should track whether their agency meets the high-performance benchmarks necessary to secure top-tier valuation multiples in this tightening market.
Further reading
For more insight into how market conditions affect coverage and premiums, see our Insurance section.
Source note: This article includes information reported by Insurance Business.
Live Poll
Do you believe the acquisition of local insurance agencies by large investment firms benefits your community?
