OPTIS Partners does an annual accounting of mergers and acquisitions of insurance agencies. The report is titled 2015 Agent-Broker Mergers & Acquisitions. These are agencies selling property and casualty insurance along, property and casualty and employee benefits together and employee benefit only agencies.
In 2015 — OPTIS Manager Director Timothy Cunningham said — those M&As hit an all-time record. There ended up being 451 in the U.S. and Canada and that tops the 2014 record of 357 by almost 100.
Cunningham said this is strong evidence of a strong, steady shift if buyer dynamics. “Private-equity-backed buyers were responsible for virtually all of the year-over-year growth, while P&C agencies dominated the seller category,” Cunningham said.
The top buyers of 2015 are:
• Private-equity agencies — 242 purchases.
• That’s 50% more than 2014.
• It’s 54% of the total purchases last year.
Genstar Capital’s Ascisure picked up the most at 56. “This marks the first time since OPTIS has been tracking M&A activity that any buyer group has accounted for the majority of transactions,” Cunningham added.
On the privately owned side of things, they picked up 109 of them followed by:
• Public brokers — 50
• Banks — 24
• All others — including carriers — 26
When it comes to selling:
• Agencies mainly focusing on property and casualty insurance accounted for 57% of all sales.
• Those selling both P&C and employee benefits made up 17% of the transactions. Employee benefits only accounted for 17%.
• The rest are at 9%.
And there’s one more twist to the story. Cunningham said the actual number of sales is likely much higher than 451. Some transactions are not reported and small transactions are almost never reported.
Click here to see the full report if you’re interested.
The full report, 2015 Agent-Broker Mergers & Acquisitions, can be read online here.
Source link: Insurance Business America