Sica | Fletcher Continues To Lead the Insurance M&A Industry in 2024
May 13 2024 - 8:39AM
Business Wire
Q1 2024 Agency and Broker Buyer Index Reveals a
Dynamic Landscape for Insurance M&A
Sica | Fletcher releases the Q1 2024 Agency & Broker Buyer
Index. Investors continue to be more selective when evaluating
acquisition opportunities, with many well-funded buyers in the
market still 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 71% of all deal activity in the agency and
brokerage space in Q1 2024.
According to the report, SF Index members acquired 111
Agents/Brokers last quarter, totaling $284M in agency and broker
revenue (approximately 21% less than what was acquired in Q1 2023).
In terms of deal volume, BroadStreet Partners led the group during
Q1 2024 for the second consecutive year.
Many SF Index Members demonstrated steady increases in Q1 2024
deals compared to Q1 2023, while others have taken a strategic
pause. The shift in buyer rotation year-over-year continues to
shape the dynamic insurance M&A landscape.
Private Equity-backed buyers retain their stronghold on M&A
activity with 87% of Q1 2024 Index transactions, even as the
interest rate environment and strategic acquisitions continue to
slow down a handful of platforms.
“Despite the reduction in deal activity in Q1 2024, Sica |
Fletcher’s Agency & Broker Buyer Index reveals that many Index
Members still achieved an increase in deals year-over-year,” said
Managing Partner Mike Fletcher. “The complexity of transaction
activity amidst the market’s high cost of capital reinforces the
importance of engaging with a strategic financial advisor.”
To view the buyer rankings by deal volume, details on private
equity activity, and more, download the Q1 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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version on businesswire.com: https://www.businesswire.com/news/home/20240510267328/en/
Mike Fletcher Managing Partner, Sica | Fletcher
mjf@sicafletcher.com