Today, top performing insurance brokers continue to be very attractive for acquisition by investors or strategic buyers. This appeal is not only due to favorable market conditions, but it’s also because these brokers deliver strong fundamentals, have recurring revenue and are remarkably stable during economic downturns. The value of private equity (PE) investments in brokers reached a record high in 2024, with 2025 well underway to exceed this milestone. PE-backed buyers are now responsible for over 60% of all the deal activity in Europe.
A new class of investor-backed consolidators is rapidly emerging: financially strong companies that are attempting to triple their size within approximately five years using a ‘buy-and-build’ strategy. Their vision extends beyond their own market or region; consolidators think big, broad, and internationally. For independent brokers seeking growth or looking to map out their strategic options, a purely local perspective is no longer sufficient. They need to adopt an international vision. The critical question for independent brokers is whether they should follow the new market leaders or pursue alternative paths.
Insurance broking is no longer just local
The European insurance broker industry has long been defined by its local roots and fragmented structure, relying heavily on personal relationships and deep regional expertise. For years, small independent brokers held sway, offering customised solutions to meet the unique needs of their communities. However, this once localised and fragmented industry is undergoing a dramatic transformation.
The insurance broking industry has experienced a significant uptick in merger and acquisition (M&A) activity since the early 2000s, particularly in the U.S., where approximately 7,100 insurance brokers have been acquired in the past decade alone. This momentum quickly shifted to the UK, where the number of independent insurance brokers has nearly halved over the past 15 years. More recently, a growing number of buyers, many originating from the U.S. and UK, have shifted their focus to continental Europe, where consolidation efforts are steadily gaining momentum.
PE and PE-backed buyers have been a driving force behind insurance broker consolidation in Europe, and the record-high value of PE investments in insurance brokers was fueled by record-high levels of unspent cash reserves, commonly referred to as “dry powder,” much of which is still waiting to be invested.
MarshBerry reported 268 announced M&A transactions involving European insurance brokers in the first half of 2025 (through June 30). Private equity (PE) firms continued to deploy capital in insurance brokerage markets, while strategic buyers remained active, expanding their platforms across Europe through tuck-in acquisitions.
Cross-border M&A is helping the big grow bigger
International acquirers (consolidators) are reshaping the sector, and they’re here to stay. An increasing number of European brokers are adopting buy-and-build strategies, not only within their own markets but increasingly looking across borders for attractive M&A targets. Just a decade ago, only the traditional Top 3—Marsh, Aon, and Willis—boasted a significant international presence across Europe. Today, scores of brokers are leveraging extensive networks of branches to operate across borders. It’s no coincidence that MarshBerry has published its first-ever Top 20 list of the largest European brokers this year. Ten years ago, such a list would have been meaningless; today, it clearly reflects that insurance distribution in Europe has become an international playing field.
Across European countries, a pattern is visible where national brokers are consolidating at all levels: from very small local books joining forces to top ten brokers merging. The result is a stream of domestic broker businesses, gradually scaling from small to mid-size to national champions and finally to European brokers. Targeting and acquiring insurance brokers in cross-border countries allows leading brokers to tap into new client bases.
These leading brokers have predominantly Anglo-Saxon origins and are mostly PE-backed. Among the Top 20 largest broker platforms in Europe, six have U.S. origins, while five are UK-based, reflecting the ongoing influence of these regions in shaping the European insurance broking market.
However, it is certainly not exclusively Anglo-Saxon brokers driving rapid market consolidation. Across continental Europe, new buy-and-build platforms are emerging at a fast pace. Traditional brokers acquired by PE undergo a complete strategic transformation, evolving into highly active players in the M&A market. For instance, in 2021, Germany’s oldest insurance broker brand, GGW Group (Gossler, Gobert & Wolters), transitioned with financing from Hg Capital and later Permira. Similarly, in 2023, the Dutch broker Licent Group secured funding from Gilde Equity Management, and just last year, the Belgian broker Induver merged with Clover with the support of Hg Capital.
Combining insurance broking and MGA power in Europe
Consolidators in the European insurance distribution market are increasingly combining traditional insurance broking with MGA (Managing General Agent) capabilities to boost margins and create more competitive platforms. By integrating MGA expertise, these firms can underwrite niche or specialty risks, offer tailored products, and capture a larger share of the margin within the insurance value chain. This hybrid model not only enhances revenue streams and operational efficiency but also strengthens the ability to serve diverse client needs across multiple markets.
The landscape for MGAs in continental Europe is varied and diverse. Germany has had a robust MGA market for many years, with a wide range of MGAs operating across niche segments and a concentration in marine. France, Italy, and Spain are all experiencing a growing MGA sector, particularly in niche insurance products for both commercial and personal lines. The broker landscape in the Netherlands is distinctive, with many large retail broker firms operating their own MGAs. Finally, The Nordic countries, including Sweden, Denmark, Norway, and Finland, have a strong presence of MGAs focusing on marine, renewable energy, and other specialised insurance sectors. The total number of sizeable MGAs in continental Europe is estimated by MarshBerry to be around 500. However, this figure is approximate, as most European countries do not track the number or activities of MGAs.
The bottom line for independent brokers
Europe still has a large number of independent insurance brokers. According to MarshBerry’s analysis, there are over 100,000, ranging from many small firms—often sole proprietorships—to mid-market firms and large enterprises. The management teams and owners of these independent brokers need to recognise that the market is changing. The era of insurance broking as a purely local business is over. International market leaders are set to grow even larger in the coming years, while new entrants, backed by private equity, will continue to pursue buy-and-build strategies.
So, what is the bottom line for independent insurance brokers? They must decide how to respond. Entrepreneurs in this sector cannot afford to ignore the profound transformation underway. Ignoring change ultimately means you won’t survive.
Transferring your company to a strong external buyer can be a smart decision, aligned with your company’s lifecycle. But following the market leaders is by no means the only option. Every insurance broker with strong performance, solid organic growth, and good profitability should recognise that numerous strategic opportunities exist. In today’s market, it is a matter of putting all options on the table: pursuing independent organic growth, attracting an investor, selling your firm to a strategic buyer, or joining forces with other brokers to form a new broker group. Now is the time to assess your strategic options and prepare for what lies ahead.
