Specialty intermediary M&A remained active through the first half of 2026, with 52 announced transactions, up 11% year over year, although activity moderated in Q2 following a strong first quarter. Despite the year-over-year increase, transaction volume remains below the highs of 2021–2023, with 2026 currently expected to finish at approximately 150 transactions, roughly in line with 2025.
Key trends shaping the market include:
- Private equity remains the primary driver of activity, accounting for 69% of announced specialty intermediary transactions through June 2026, including four direct sponsor investments in new platforms.
- Buyers are becoming increasingly selective amidst the decline of public broker valuations, a softening P&C rate environment, and concerns surrounding AI’s potential impact on insurance distribution.
- The valuation gap is widening. Differentiated, high-growth firms continue to achieve valuations in line with the all-time highs seen in 2025, while average businesses are experiencing valuation pressure toward 2022–2024 levels.
Bottom line: Buyer demand remains strong, but growth and differentiation will increasingly determine which sellers command premium valuations.
