Fletcher Q2 Index highlights comparable M&A activity through 2023

YTD June 2024 Agency and Broker Buyer Index Shows Steady Growth in M&A

NEW YORK, August 6, 2024–(BUSINESS WIRE)–Sica | Fletcher Releases Q2 2024 Agency & Broker Buyer Index. Deal volume was comparable to the same period last year, with investors remaining cautious in evaluating acquisition opportunities and many well-funded buyers mindful of the high cost of capital.

Sica | Fletcher Index is the leading insurance brokerage M&A report. Using data reported by 22 prominent agents and brokers, the index covers 70% of all deals in the agency and brokerage space in June YTD 2024.

According to the report, SF Index members added 242 agents/brokers in the first half of the year, which collectively generated $635 million in agency and broker revenue (about 45% less than the same period in 2023). BroadStreet Partners showed a significant increase in transaction volume from 2023, leading the group in Q2 2024 with more than 70% more transactions than the No. 2 index member.

Several SF Index members experienced steady increases in deal activity compared to the same period last year, while others temporarily paused their activity. The shift in buyer turnover from year to year contributes to the changing dynamics of the insurance M&A landscape.

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

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

To view buyer rankings by deal volume, details on private equity activity and more, download the Sica | Fletcher Agency & Broker Q2 2024 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 leading industry intermediaries who have advised on over $17.5 billion in insurance agency and brokerage transactions since 2014. According to S&P Global, Sica | Fletcher is ranked as the #1 advisor in the insurance industry for the 2017-2024 YTD period in terms of total transactions advised. Learn more at SicaFletcher.com.

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Communication

Mike Fletcher
Managing Partner, Sica | Fletcher
[email protected]