An OPTIS study analyzing reported transactions in the U.S. and Canada found a record amount of agent-broker M&A activity took place in 2012. A total of 291 deals were reported in 2012, topping 2008's previous record of 284. 2011 and 2007 were healthy years, with 279 deals each. Activity in 2009 and 2010 did not break 200; OPTIS executives speculate the drop during these years could be due to the weak economy.
Of the 291 deals, privately owned agencies topped the list at 93 mergers and acquisitions, followed closely by 86 private-equity-backed firms. Private equity and public brokers made up 53 percent combined in 2012, increasing significantly from 17 percent of 2008's total.
Arthur J. Gallagher and Brown & Brown are the most active buyers since 2008. In 2012, Gallagher announced 30 deals and has completed a total of 102 deals since 2008. Brown & Brown announced 15 this year and have completed 96 transactions since 2008. Hub International, Confie Seguros, USI Holdings and Assured Partners followed with 10 or more acquisitions since 2008.
Property-casualty agencies accounted for most purchases in 2012. OPTIS speculated the high demand for employee benefits firms is a result of 2009 healthcare reform legislation.
Retail and wholesale agencies and brokerages, MGAs/MGUs selling property-casualty, employee benefits and life/financial services products were included. Data was gathered from press releases, websites and news reports.
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