Insight

A singular moment in insurance M&A: How winners outperform

As investors outbid each other for brokerages, they need insights and tailored strategies to maximize the value of their acquisitions.

Melanie Henderson

Melanie Henderson

Principal, Advisory, Corporate Strategy, KPMG (US)

+1 516-434-1826

David Montes

David Montes

Principal, Corporate Strategy, KPMG US

+1 404-979-2115

Jonathan Froelich

Jonathan Froelich

Partner, Deal Advisory, KPMG US

+1 267-256-1661

John Johansen

John Johansen

Managing Director, Strategy, KPMG LLP

+1 212-954-1000

Investors are outbidding each other for insurance distribution deals. Private equity firms have investments in insurance brokerages worth in excess of $60 billion today, and some PE-sponsored retail platforms acquired more than 50 agencies in 2019 alone. 

As valuations rise and promising targets become harder to find, acquirers have to look harder for synergies and more effective approaches to integration. In our experience, investors can take different paths to value, but they all need deep industry-specific insights to maintain the strength of the distribution channel and manage infrastructure and the latest technology. Top performers do more than take over books, boost efficiency and slash costs: they catalyze transformational change. In this brief article, we explain how they excel.