Through July 2026, insurance brokerage merger and acquisition (M&A) activity remains below the record-setting pace of 2025. Yet overall buyer demand remains healthy, supported by continued interest from private capital-backed buyers and strategic acquirers that view the brokerage sector as one of the most attractive areas of financial services.
The difference in today’s market is not a lack of capital or appetite for acquisitions. Rather, it is the growing distinction buyers are making between firms that can consistently outperform and those that cannot.
A softer insurance market, moderating premium rate increases, and more challenging organic growth conditions have made sustainable growth increasingly difficult to achieve. As a result, buyers are placing greater emphasis on identifying firms that have proven they can generate new business, retain talent, deepen client relationships, and execute specialized growth strategies.
This has created a more pronounced divide across the marketplace. Average firms continue to attract interest, but the strongest organizations are commanding a disproportionately large share of buyer attention. Brokers with demonstrated organic growth, niche expertise, scalable operations, and a clear strategic vision are increasingly viewed as premium assets.
July brought little change to the overall M&A landscape, although broader economic conditions continued to reinforce buyer selectivity. The Federal Reserve maintained interest rates and signaled ongoing concerns about inflation, contributing to expectations that financing conditions may remain elevated for longer than previously anticipated. At the same time, economic uncertainty and slowing premium-rate increases have made sustainable organic growth increasingly valuable to acquirers.
As the year progresses, the defining theme in insurance brokerage M&A may not be transaction volume, valuation levels, or financing conditions. Instead, it may be the widening gap between firms that are positioned to outperform in a slower-growth environment and those that are struggling to differentiate themselves. In today’s market, growth is more than a performance metric. It is increasingly the factor determining which firms attract the greatest demand, the strongest partnerships, and the most favorable outcomes.
M&A market update
As of July 31, 2026, there were 360 announced M&A transactions in the U.S. This is down 8.9% compared to last year at this time when there were 395 transactions announced through July.
Private capital-backed buyers accounted for 268 of the 360 deals (74.4%) through July. Independent brokers were buyers in 31 deals, representing 8.6% of the market. There have been six announced transactions by bank buyers in 2026. Deals involving specialty intermediaries as targets accounted for 61 transactions, representing 16.9% of all deals so far.
Deal activity from the top ten buyers accounted for 51.9% of all announced transactions, while the top three (BroadStreet Partners, Inszone, and ALKEME) accounted for 29.7% of the 360 total transactions.
Notable transactions:
- July 1: ALKEME Insurance acquired Blue Sky Insurance, a Southern California-based independent brokerage specializing in insurance solutions for apartment and multifamily properties. The acquisition strengthens ALKEME’s capabilities in the habitational insurance market, an area that has become increasingly specialized as property owners navigate evolving underwriting conditions and greater reliance on surplus lines capacity. Blue Sky adds deep expertise in multifamily risk placement while expanding ALKEME’s presence in California, supporting the firm’s strategy of acquiring niche agencies with specialized industry knowledge and strong regional market positions. MarshBerry served as the advisor to Blue Sky Insurance in this transaction.
- July 29: Grant Thornton agreed to acquire CBIZ in a transaction valued at up to $5 billion, with CBIZ’s Benefits and Insurance Services segment set to be separated into a standalone company backed by New Mountain Capital following the close. The new platform will include CBIZ’s property and casualty insurance brokerage, employee benefits, retirement, and payroll services businesses, which generated approximately $409 million in revenue in 2025. New Mountain will provide additional equity capital to support the independent company, creating a sizable private equity-backed insurance and benefits platform positioned for continued growth and consolidation. The separation allows Grant Thornton to integrate CBIZ’s accounting and advisory operations while establishing the insurance and benefits business as an independent organization.
2026 Acquisition Detail (YTD as of July 31, 2026)
Retail vs. Specialty
Retail: 299
Specialty: 61
What’s Being Bought
Full Service: 46
P&C: 254
Employee Benefits: 60
Who’s Buying
Insurance Broker – Independent: 31
Insurance Broker – Public: 26
Insurance Broker – Private Capital Backed: 268
Insurer and Other: 29
Bank & Thrift: 6
