Sica | Fletcher’s Q3 2022 Agency & Broker Buyer Index shows a 3% increase in acquisitions over the same period last year.
The Sica | Fletcher Broker Buyer Index is the most comprehensive report on insurance brokerage merger and acquisition activity available. It tracks deal activity using self-reported data from 18 of the industry’s most prolific agent and broker acquirers. In the first three quarters of 2022, these 18 agent and broker acquirers accounted for 70% of all deal activity: 487 of a total of 696 announced transactions.
According to the report, SF Index members have earned $1.5 billion in revenue through the third quarter of 2022. Many SF Index members are outpacing their 2021 acquisition rate year over year. PCF Insurance Services is acquiring at an all-time high, with 83 transactions so far this year. Acrisure, Hub International, and High Street Insurance Partners are close behind.
“Given that borrowing costs for acquirers have nearly doubled since the beginning of this year, it’s surprising to see Q3 M&A activity as active as it was a year ago,” says Managing Partner Mike Fletcher.
The quarterly report reflects the growing dominance of private equity-backed firms in insurance brokerage M&A. Private equity-backed firms completed approximately 92% of SF Index transactions through YTD September 2022, a trend that has increased year over year since 2017.
According to the S&P Global Market Intelligence League Tables, Sica | Fletcher LLC leads the industry in terms of deal volume through September 2022, with 74 insurance M&A transactions so far in 2022. This is more than double the number of transactions as the next closest advisor. For the past nine years, Sica | Fletcher has led the insurance industry in deal volume.
Download the Q3 2022 Sica | Fletcher Agency & Broker Buyer Index for more information.
Sica | Fletcher is a strategic and financial advisory firm that focuses solely on the insurance industry. Michael Fletcher and Al Sica, the company’s founders, are two of the industry’s top dealmakers, having advised on over $11,000,000,000 ($11 billion) in insurance agency and brokerage transactions since 2014. According to S&P Global, Sica | Fletcher is the top advisor to the insurance industry in terms of total deals advised on from 2017 to 2022. SicaFletcher.com has more information.