Amid headwinds, investor demand
continues for high-quality firms
[A]cquirers are focusing on firms that can
demonstrate a clear ability to win new business,
retain talent, deepen client relationships, and build specialty expertise.
By James Graham, CVA
Despite a slower pace of transactions compared to last year, insurance brokerage merger and acquisition (M&A) activity through the first half of 2026 remains on track for another strong year. According to MarshBerry data, announced U.S. insurance brokerage transactions declined modestly year over year, reflecting a more measured acquisition environment rather than a fundamental shift in buyer appetite.
Several external factors are influencing activity. The insurance industry’s transition into a softer market environment, combined with slowing premium rate increases and more challenging organic growth conditions, has prompted buyers to become increasingly disciplined in evaluating acquisition opportunities. However, these dynamics have done little to diminish the long-term attractiveness of the insurance brokerage business model.
Private equity-backed buyers continue to be the primary force in the market, accounting for more than 70% of announced transactions during the first half of the year. The industry’s recurring revenue streams, strong cash flow characteristics, and fragmented ownership landscape continue to attract significant investment capital. As a result, competition for quality firms remains intense, even as overall deal counts moderate.
More importantly, 2026 is shaping up to be a year defined less by transaction volume and more by differentiation. Buyers are increasingly separating top-performing firms from the broader market, placing greater emphasis on sustainable growth, talent development, specialization, and operational excellence. While average firms continue to attract interest, organizations that consistently outperform their peers are commanding the greatest attention from buyers and investors alike.
As organic growth becomes harder to achieve across the industry, acquirers are focusing on firms that can demonstrate a clear ability to win new business, retain talent, deepen client relationships, and build specialty expertise. These characteristics are becoming increasingly important drivers of valuation and buyer demand.
If there is a defining theme emerging this year, it is not a lack of demand for insurance brokerages, but rather a widening gap between firms that can consistently deliver above-average growth and those that cannot. In today’s market, growth has become the ultimate differentiator.
The author
James Graham joined MarshBerry in 2015 and is a Managing Director on MarshBerry’s Financial Advisory team in its Dana Point, California, office. His expertise includes merger and acquisition advisory, capital raising, business valuation, perpetuation and succession planning, and strategic planning. James provides his clients with customized financial and capital strategies to help them accomplish their goals. He also is a facilitator for MarshBerry’s Connect Network and actively publishes articles relevant to the insurance distribution marketplace.
MarshBerry is a global leader in investment banking and consulting dedicated to helping insurance brokerages, and firms in the wealth management industry and the accounting and tax industry, achieve sustained growth and value for every stage of ownership. With a legacy spanning over 40 years, MarshBerry’s suite of services includes investment banking (merger & acquisition advisory; capital raising), financial consulting (strategic planning; valuations; perpetuation planning), organic growth consulting (leadership, sales & talent solutions), executive peer exchange, agency network and market intelligence and performance benchmarking.
M&A MARKET UPDATE
Through June 30, 2026, there were 300 announced M&A transactions in the United States, representing a 3.2% decrease over the same period in 2025. Keep in mind, a similar trend occurred in early 2025 due to uncertainty in the broader macroeconomic environment, only to have the year end with the third highest number of M&A transactions on record.
Out of those 300 deals, private capital-backed buyers accounted for 218 (72.7%) of them, while independent brokers were buyers in 29 deals, or 9.7% of the market. There have been only five announced transactions by bank buyers so far this year. Deals involving specialty distributors as targets accounted for 53 transactions, representing 17.7% of the total market.
Deal activity from the marketplace’s most active acquirers remains strong in 2026. Ten buyers accounted for 52.3% of all announced transactions, while the top three (BroadStreet Partners, Inszone Insurance, and ALKEME Insurance) account for 30% of the 300 total transactions.
Notable Q2 2026 transactions
April 14:
Trucordia acquired the assets of JJL&W Insurance Consulting, a Baton Rouge-based employee benefits brokerage, expanding its presence in Louisiana and strengthening its benefits advisory capabilities. Founded in 2020, JJL&W provides consulting and brokerage services across medical, dental, vision, life, and disability benefits, along with support for funding strategies, compliance, and administration for employers and individuals. The firm also partners with other local agencies by managing books of business and providing back-office support. The acquisition adds an experienced team with a relationship-driven approach, enhancing Trucordia’s ability to deliver tailored employee benefits solutions within its broader national platform. MarshBerry served as advisor to JJL&W in this transaction.
May 1:
BroadStreet Partners acquired Bearing Insurance Group, a Virginia-based independent insurance brokerage with roots dating back to 1999. Headquartered in Glen Allen, Virginia, Bearing provides a broad range of commercial and personal insurance solutions, including property and casualty, employee benefits, workers compensation, and business auto coverage. Originally established by a consortium of community banks and rebranded as Bearing Insurance Group in 2024, the firm has built a strong presence across the Mid-Atlantic through its client-focused approach and diversified service offerings. The transaction adds another established regional platform to BroadStreet’s growing network of partner agencies and further expands its footprint in the Southeast and Mid-Atlantic insurance markets. MarshBerry served as advisor to Bearing Insurance Group in this transaction.
June 3: Novacore acquired Euclid Design Underwriters, expanding its capabilities in architects and engineers professional liability insurance. Founded in 2019, Euclid Design is a specialized managing general agent providing errors and omissions coverage, risk consulting, contract review, and risk management services for architects, engineers, and other design professionals. The business will be integrated into Novacore’s Professional Underwriters Agency, strengthening the platform’s expertise in professional liability and reinforcing Novacore’s strategy of building a diversified specialty insurance platform through targeted acquisitions of niche underwriting businesses. MarshBerry served as advisor to Euclid Design Underwriters in this transaction.
Investment banking services in the USA are offered through MarshBerry Capital, LLC, Member FINRA and SIPC, and an affiliate of Marsh, Berry & Co., LLC. 28601 Chagrin Blvd., Suite 400, Woodmere, Ohio 44122 (440) 354-3230
Disclosure: All deal count metrics are inclusive of completed deals with U.S. targets only. Scorecard year-to-date totals may change from month to month should an acquirer notify MarshBerry or the public of a prior acquisition. Statistics are preliminary and may change in future publications. Please feel free to send any announcements to M&A@MarshBerry.com.
