Sica | Fletcher Broker Buyer Index Reports M&A Transaction Activity Up 40% Year-Over-Year

2021 Year End Market Report Released

NEW YORK--(BUSINESS WIRE)--Sica | Fletcher announces the release of its 2021 Year End Agency & Broker Buyer Index, which details a 40% increase in acquisitions this year compared to 2020.

The Sica | Fletcher Broker Buyer Index is the most comprehensive report on insurance brokerage M&A activity in existence. It tracks the acquisitions of 16 of the most prolific agent and broker acquirers in the industry with the data provided by the acquirers themselves. These 16 agent and broker acquirers accounted for 79% of all deal activity in 2021, 756 of a total of 957 announced transactions.

According to the report, SF Index members acquired $3.5 billion of agency and broker revenue, 49% more revenue than the same period in 2020. Growth was particularly pronounced during Q4, with 72% more acquisition revenue in Q4 2021 than Q4 2020. For the second year in a row, Acrisure dominated the industry in terms of transaction volume, with 132 deals for 2021, followed by PCF Insurance Services and High Street Insurance Partners.

“2021 was an impressive year for the insurance brokerage M&A market, with a record number of acquisitions taking place,” says Managing Partner Mike Fletcher. “We attribute this increase in transaction volume to agency owners wishing to sell before potential tax increases, continued demand for acquisition candidates as private equity sponsored brokerages increasingly dominate the market, and notably high transaction multiples.”

The report, which is published quarterly, reflects the increasing dominance of private equity-backed firms in insurance brokerage M&A. About 90% of SF Index transactions were executed by private equity-backed firms during 2021, a trend that has increased year-over-year since 2017.

For more details, download the 2021 Year End Sica | Fletcher Agency & Broker Buyer Index, here.

About Sica | Fletcher: Sica | Fletcher is a strategic and financial advisory firm focused exclusively on the insurance industry. Founders Michael Fletcher and Al Sica are two of the industry's leading dealmakers who have advised on over $11,000,000,000 ($11 billion) in insurance agency and brokerage transactions since 2014. According to S&P Global, Sica | Fletcher ranked as the #1 advisor to the insurance industry for 2017-2021 in terms of total deals advised on. Learn more at SicaFletcher.com.