After a record year in 2021, consulting firm Marshberry said insurance M&A numbers are down by more than 200 in 2022, but when all is said and done, the year could still be the second highest on record.
According to Marshberry, there were 708 M&A deals in 2002, up from 924 in 2021.
“When the dust settles and all deals are announced, this will likely be the second-highest year ever after 2021, eclipsing the total of 712 deals announced in 2020,” even with record inflation, a slowing economy, a deficit in labor and the increase in the Federal Reserve. interest, said Marshberry.
More than 74% (525) of deals in 2022 were backed by private equity buyers. Independent agencies accounted for 83 M&A transactions.
Marshberry said the top 10 most active buyers accounted for 345 of 708 transactions (48.7%), while the top three – Acrisure, Hub International Limited and Peter C. Foy & Associates Insurance Services – accounted for last year 19.8% of total transactions. .
Marshberry added that valuations in the insurance distribution sector were “still very strong” for 2022 and, looking ahead, the company said there are “many companies looking to invest in this space and valuations remain high despite a level playing field and rising cost of debt.”
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