North America insurance broker M&A hits 4-year low Q1'25

Insurance broker deals declined steeply during the first quarter, hitting the lowest total number of deals seen over the past 4 years.

With 101 deals logged in the first quarter of 2025, the total figure was considerably less than any quarter since 2021, with the closest figure being 125 deals during the first quarter of 2024.

The total reported deal value was also down, with the aggregate transaction total for the first quarter totaling $1.73 billion, down from $13.49 billion in the fourth quarter of 2024 and $13.23 billion in the first quarter of 2024.

The decrease in the aggregate value of transactions and total 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 K. Howell during a May 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," Powell 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.