North America insurance broker M&A hits 4-year low in Q1 2025

Insurance broker deals declined steeply during the first quarter, with the lowest number of deals announced over the past four years.

With 101 first-quarter deals logged, considerably less than any quarter since 2021, the closest comparison is 125 deals during the first quarter of 2024.

Reported deal value also dropped, with a first-quarter aggregate transaction total of $1.73 billion, compared to $13.49 billion in the previous quarter and $13.23 billion in the prior-year period.

The decrease in the aggregate value of transactions and number of transactions involving insurance brokers partially matched the M&A trends in the broader US and Canadian markets, which saw deals decline but aggregate values rise amid uncertainty following tariffs by US President Donald Trump.

– In Play Today highlights potential mergers and acquisitions in the global insurance sector, while M&A Replay presents a summary of recently announced deals. – Discover the latest trends in insurance M&A across Asia-Pacific and North America. – Access deep dives into insurance transactions across the globe via our Deal Profile feature.

The largest deal announced in the quarter was Arthur J. Gallagher & Co.'s purchase of Woodruff-Sawyer & Co. Inc. for $1.2 billion, which was completed in April.

The acquisition was touted as part of the company's growth strategy by CFO Douglas Howell during a May 1 first-quarter earnings call.

"Our current cash position, potential borrowing capacity and strong expected free cash flow position us well for our pipeline of M&A opportunities," Howell said.

Gallagher still has over $2 billion of M&A capacity in 2025 and another $5 billion of capacity in 2026 before using any stock, Howell said, describing the company's M&A strategy as having "a tremendous runway."

The other large deal announced in the first quarter was Ryan Specialty Holdings Inc.'s acquisition of Velocity Risk Underwriters LLC from funds managed by Oaktree Capital Management LP for an up-front cash consideration of $525 million, subject to customary purchase price adjustments.

Velocity is a managing general underwriter that offers first-party insurance coverage for catastrophe-exposed properties. It will join the Ryan Specialty Underwriting Managers division. The deal closed in February.

As part of the transaction, Factory Mutual Insurance Co. will acquire Velocity's wholly owned excess and surplus carrier, Velocity Specialty Insurance Co.