Agency M&A Declines 24% in H1 2023: OPTIS

In the first half of the year, agency mergers and acquisitions in the financial industry decreased by 24% to 359 deals due to higher capital costs. Private equity-backed brokers led the buying activity, and property-and-casualty insurance agencies were the most common sellers. Some firms increased their deal activity, and there are opportunities for stronger firms with stable balance sheets amid rising interest rates.