Sica | Fletcher Q2 Index Highlights Comparable M&A Activity to 2023

YTD June 2024 Agency and Broker Buyer Index Shows a Steady Rise for M&As

Sica | Fletcher releases the Q2 2024 Agency & Broker Buyer Index. Deal volume was comparable to this period last year, with investors maintaining a cautious approach in assessing acquisition opportunities and with numerous well-funded buyers mindful of the high cost of capital.

The Sica | Fletcher Index is the leading report on mergers and acquisitions within the insurance brokerage sector. Leveraging self-reported data from 22 prominent agent and broker acquirers, the Index accounts for 70% of all deal activity in the agency and brokerage space June YTD in 2024.

According to the report, SF Index members acquired 242 Agents/Brokers in the first half of the year, totaling $635M in agency and broker revenue (approximately 45% less than the same period in 2023). BroadStreet Partners demonstrated marked deal volume growth since 2023, leading the group during Q2 2024 with over 70% more deals than the #2 Index member.

Several SF Index Members experienced consistent growth in their deals compared to the same period last year, while others have temporarily paused their activities. The shift in buyer rotation year over year is contributing to the evolving dynamics of the insurance M&A landscape.

Private Equity-backed buyers maintain a dominant position in M&A activity, accounting for 87% of YTD June 2024 Index transactions. However, the interest rate environment and strategic acquisitions are causing a slight slowdown for a few platforms.

While growth may seem slow, Sica | Fletcher’s Agency & Broker Buyer Index reveals that many Index Members still achieved an increase in deals year-over-year. Managing Partner Mike Fletcher says, “Our clients’ success - and ours - are rooted in Sica | Fletcher’s ability to bring together the right people, resources, and ideas to create maximum value.”

To view the buyer rankings by deal volume, details on private equity activity, and more, download the Q2 2024 Sica | Fletcher Agency & Broker Buyer Index here.

About Sica | Fletcher: Sica | Fletcher is a strategic and financial advisory firm focused exclusively on the insurance industry. The firm was founded in 2014 by Michael Fletcher and Al Sica, two of the industry's leading dealmakers who have advised on over $17.5 billion in insurance agency and brokerage transactions since 2014. According to S&P Global, Sica | Fletcher ranked as the #1 advisor to the insurance industry for 2017-2024 YTD in terms of total deals advised. Learn more at SicaFletcher.com.

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