The 22 buyers that make up the Sica Fletcher Index were involved in 242 agent-broker deals in the first six months of 2024, generating total revenue of $635 million.

That’s a 45% drop in revenue from what was acquired in the same period a year ago, said Sica Fletcher, a consultancy specializing in the insurance industry. Transaction volume fell from 260 completed acquisitions in the first half of 2023.

“Investors continue to be more selective in evaluating acquisition opportunities, with many deep-pocketed buyers in the market conscious of the high cost of capital,” the company said in its Agency & Broker Buyer Index for the second quarter of 2024. Sica Fletcher said the index accounted for 70% of transaction activity in the agent-broker space in the first half of the year.

As in the first quarter, BroadStreet Partners led the SF Index in the first half of 2024 with 46 deals. Hub International and Inszone Insurance followed with 27 and 24 deals, respectively.

According to Sica Fletcher, 87% of M&A transactions by the end of June were by buyers with private equity financing, but “the interest rate environment and strategic acquisitions are leading to a slight slowdown for some platforms.”

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Trends Mergers & Acquisitions Agencies