Specialty Market Review

Limited Supply in a Shifting Market

Specialty intermediary firms represent a distinct vertical within insurance distribution, encompassing wholesale brokers, MGAs, and delegated authority businesses (collectively “specialty”) with differentiated risk profiles and placement dynamics. In 2025, specialty M&A activity continued to reflect both the unique characteristics of this segment and broader insurance brokerage market trends. Amid a volatile year for the U.S. economy that included trade policy changes, geopolitical tensions and three Federal Reserve rate cuts, the specialty insurance sector saw a steady flow of M&A transactions – albeit at a slower rate than most (buyers) would prefer.

For the second year in a row, deal volume in the specialty market was once again characterized by the low supply of quality acquisition targets in 2025. This ongoing imbalance between supply and demand in the sector has been driven by heavy consolidation paired with robust interest from a growing buyer community.

Due to the lack of supply, specialty intermediaries remain highly sought after (specifically delegated authority firms) by the buyer and investor community. A primary driver of this demand being the superior growth potential due to the differentiated niche characteristics specialty firms present. This often translates into very profitable businesses with high barriers to entry from competitors.

Historic growth in the specialty market

Strong growth in the specialty market over the past decade has been fueled by significant premium growth within the surplus lines and delegated authority markets. Significant catalysts for this movement being:

Natural catastrophes: Uptick in frequency and severity of major weather-related events (e.g., hurricanes and wildfires).
Firming rate cycle: Elongated insurance rate cycle.
Nuclear verdicts: Historically outsized settlements and verdicts on casualty related claims.
Litigation funding: Claim settlement process where third parties provide capital to cover the costs of plaintiffs or lawyers in exchange for a portion of the settlement (should one be granted).

This growth has driven rampant consolidation in the specialty sector as buyers, with prevalent access to investment capital, seek to create more value and economies of scale. The major ancillary benefits for buyers are having more market clout and diversification of what tend to be highly concentrated businesses when an independent organization sells to larger organizations. As an example of this consolidation and premium growth trends – in 2009 the market had approximately five specialty firms with $1 billion or more in P&C premium. In 2025, that number exploded to over 27 firms with a billion or more in P&C premium, of which seven of these firms have at least $5 billion, and the top three each with over $25 billion in premium. Currently, MarshBerry estimates these firms collectively place over three-quarters of specialty P&C premium in the U.S. marketplace.

A shifting landscape

However, as of late, there has been an influx of capacity flowing into the market. Given these developments, the specialty sector is entering into a different market environment compared to the prior half decade.

One major dynamic impacting the specialty sector in 2025 is the shift from a firm-to-hard rate change cycle to a softening or even soft environment (e.g., certain property risks). This is perceived by some as being the potential end of “The Golden Age” of specialty firms, as they tend to do well in a rising rate environment when capacity is generally harder to access. Time will tell if the specialty market will be able to flex its resiliency muscle one more time and demonstrate the strength to preserve and grow in adverse market conditions.

Specialty Firms with $1 Billion or More in P&C Premium

Specialty Firms with $5 Billion or More in P&C Premium

Specialty Firms with $25 Billion or More in P&C Premium

M&A market update

There were 149 announced specialty firm M&A transactions in 2025, a 24% increase from the 120 deals announced in 2024. However, this is still off the all-time highs experienced in the 2021-2023 calendar years.

U.S. Announced Specialty Transactions By Buyer Type

Specialty transactions comprised approximately 17% of total deal activity in 2025, compared to 14% in 2024 and 22% in 2023, which was a record high. This range is more in line with historical market share prior to the sharp decline in specialty M&A activity in 2024.

Retail vs Specialty Intermediaries Percentage of Announced US Transactions

This shift in transaction volume reflects changing supply dynamics across the market. The significant drop in specialty transaction activity in 2024 was driven by a constrained supply of high-quality specialty firms coming to market. 2025 data suggest this dynamic may be beginning to change, as specialty transactions increased 24% year-over-year, indicating a widening pool of available opportunities. Specifically, P&C specialty firms rebounded from only 59 transactions in 2024 up to 87 in 2025, representing a 47% increase. In contrast, retail-only transactions declined 3.0% over the same period, highlighting a relative divergence between the two segments as buyer and investor demand remains more robust for specialty operators.

Private capital-backed buyers continue to drive activity

Transaction activity during the last year continued to be driven by private capital-backed organizations that totaled 94 deals in 2025 – up from 89 in 2024 – representing over 60% of activity in the sector. All other buyer types collectively registered only 55 deals in 2025. However, both insurance carriers and “other” buyers (primarily stand-alone private capital investors) significantly increased deal volumes in 2025. In particular, the surge of direct investments by private equity firms in specialty intermediary platforms signals the sophisticated investor community expects the sector to continue to generate strong returns over the next three to five years. Just as important, it reflects their confidence that buyers will be available when they exit their investments at the end of that holding period.

The Most Active Buyers of Specialty Firms in 2025

Integrity Marketing Group (IMG) made 38 specialty deals in 2025 and led the specialty buyer leader board for the fifth consecutive year. IMG is focused on the life and health sector and drives high deal volumes through a less capitalintensive approach.
AmeriLife Group saw seven transactions in 2025, following seven transactions in the prior year. AmeriLife is also primarily focused on the life and health sector.
Brown & Brown (BRO) through their specialty division, Arrowhead Specialty, recorded five transactions in 2025. BRO acquired Accession in 2025, the parent company of One80 Intermediaries, a large specialty platform.
AmWINS completed four transactions in 2025 after completing four in 2024. AmWINS is backed by private equity firms Genstar Capital, SkyKnight Capital, and Dragoneer Investment Group.
Balance Partners completed four transactions in 2025, marking its formal entry into the M&A market following a strategic investment from BV Investment Partners in 2024. The firm’s first acquisition of the year was Vanguard Specialty in March, a transaction in which MarshBerry advised Vanguard.
Tokio Marine, Ryan Specialty, The Amynta Group, OneDigital, and Brightstone all completed three transactions in 2025.

Notable Specialty Transactions In 2025

3/3/25: AmeriLife Group, LLC acquired Crump Life Insurance Services (Crump) from TIH Insurance Holdings. MarshBerry estimates this transaction represented the largest life insurance distribution deal ever sold to a strategic buyer (not a standalone PE investment). Crump is one of the largest providers of life insurance and retirement products in the U.S., with more than 30,000 financial professionals offering whole solutions in life, annuities, long-term care, disability insurance, linked benefit, and other specialty offerings.
5/12/25: Aquiline Capital Partners launched Avondale Risk, a national platform focused on uniting specialized third-party administrators (TPAs) and service providers in workers’ compensation, liability, and managed care. The platform is designed to maintain the local, boutique service models of participating firms while providing access to enterprise-grade resources, technology, capital, and operational support. At launch, Avondale includes three California-based firms – Intercare, InterMed, and George Hills – all of which bring strong reputations and expertise in public entity risk, workers' comp, and liability. MarshBerry served as advisor to Intercare in this transaction.
6/10/25: Brown & Brown, Inc. (BRO) acquired Accession Risk Management Group, Inc., the parent company of Risk Strategies and One80 Intermediaries and the ninth largest privately held brokerage in the U.S., for $9.8 billion. The purchase price reflects a ~12x EBITDA (earnings before interest, taxes, depreciation and amortization) multiple, including expected synergies, but the headline number without synergies is ~16.4x EBITDA. Accession reported $1.7B in pro forma revenue with an estimated ~$600M in pro forma adjusted EBITDA. Approximately 30% of Accession’s business came from its specialty intermediary arm, One80 Intermediaries, which integrated with BRO’s existing specialty arm Bridge Specialty / Arrowhead.
9/15/25: AmTrust Financial Services, Inc., a global specialty property and casualty insurer, announced a strategic partnership with Blackstone Credit & Insurance to spin off a portion of AmTrust’s managing general agent (MGA) and fee-based operations into a newly established company ANV Group Holdings. AmTrust will remain the underwriting partner for the existing book managed by these MGAs under a 10-year capacity agreement. The new entity aims to build a diversified, multinational MGA platform, driving value through organic growth, targeted acquisitions, and expanded strategic partnerships. This transaction underscores a growing trend in the specialty intermediary sector, where carrier-owned MGAs are increasingly being spun out to unlock flexibility, growth and value.
9/16/25: Tangram Insurance Services, Inc. (rebranded to “Balavant”) completed its spin-out from Heffernan Insurance Brokers. Tangram, a national MGA program manager with over $200 million in gross written premium, will serve as the first portfolio company of Balavant Insurance Group – a newly established holding entity backed by SkyKnight Capital. The newly established Balavant will enter a competitive landscape of specialty platforms focused both on organic program growth and inorganic expansion through acquisitions and underwriting team lifts.
9/22/25: Onex Partners acquired Integrated Specialty Coverages (ISC), a tech-enabled insurance platform, from KKR. ISC specializes in designing, underwriting, and distributing complex insurance programs, and has experienced substantial growth under KKR’s stewardship since 2021 – approaching $1 billion in annual gross written premium. With Onex’s investment, ISC will maintain its existing leadership team and employee ownership structure, while continuing to pursue a growth strategy focused on expanding its program offerings and executing strategic acquisitions.
10/24/25: Wright National Flood Insurance Services, a subsidiary of Brown & Brown, acquired the assets of Poulton Associates. Based in Salt Lake City and founded in 1989, Poulton is a major provider of private flood insurance through its National Catastrophe Insurance Program (NCIP) and related offerings. This acquisition is set to make Wright Flood the largest provider of flood insurance in the United States, combining federal, excess, and private flood offerings. MarshBerry served as the advisor to Poulton Associates on this transaction.
10/28/25: Ryan Specialty acquired Stewart Specialty Risk Underwriting Ltd. (SSRU), a Toronto-based managing general underwriter (MGU) specializing in large account, high-hazard property and casualty risks. Founded in 2016 by Stephen Stewart, SSRU has established itself as a top Canadian MGU with expertise in sectors such as manufacturing, utilities, real estate, construction, and oil and gas. SSRU will join Ryan Specialty Underwriting Managers (RSUM), expanding the company’s presence in the Canadian market and significantly increasing its total addressable market. MarshBerry served as the advisor to SSRU in this transaction.

Large retail brokers' increased interest in specialty

An ongoing theme in 2025 was that large broker platforms continued to invest in the specialty space. All of the top ten firms (and 15 of the top 20) have specialty platforms, and every top 20 firm has acquired specialty businesses in the past. These firms are interested in specialty operators given their general characteristics of high-growth and niche (i.e., differentiated) operations. These broker platforms are adding in-house specialty businesses for some of the following reasons:

Going deeper: By partnering delegated authority firms and retail brokers under one roof, synergies may emerge in developing bespoke underwriting solutions for insureds. This allows broker platforms to control more of the client experience and offer a more differentiated solution compared to that of competitors.
Capturing more of the insurance distribution chain: Brokers have increasingly looked at wholesaling as an area where they can capture more of the value chain by keeping commissions and fees in-house. This move can lead to higher profitability by cutting out (unaffiliated) intermediaries and controlling more of the value chain. Further, this allows these platforms to be more of a one-stop shop for buyers of insurance or distribution partners.
Access to data and technology: Broker platforms with in-house specialty intermediary operations may leverage data and analytics to deliver superior underwriting, claims management, and customer service solutions. The rise of tech-enabled firms has played a crucial role in this shift by making it easier to integrate advanced technology into internal operations, to streamline the client experience, and to accelerate underwriting speed and quality.

The specialty sector is sought after by the buyer community given the rising premium volume and increasing market share (as a percentage of the P&C marketplace).

Specialty premium volume has exploded from placing approximately 8.5% of the U.S. P&C premium in 2010 to over 21% in 2025, per MarshBerry’s estimates.

This premium flow is causing the specialty premium (i.e., E&S and delegated authority) to grow at a multiyear CAGR that is three times that of the non-delegated authority admitted market premium over the last ten years. As such, wholesale brokers and delegated authority agents (commonly referred to as MGAs) are reaping the benefits of this growing market segment. Meaning, as premiums increase so do the related commission dollars. This growth trend and positive future outlook is the primary driver of strong buyer interest in this segment. Furthermore, the trend of broker platforms bringing wholesale operations in-house (or in other instances streamlining wholesale broker panels to a select few “key partners”) has led to increased competition among independent wholesalers. This trend coupled with the softening rate environment may put many of the independent wholesale brokers in a vulnerable position as certain premiums that migrated from admitted to non-admitted markets over the elongated firm market cycle may shift back to admitted markets. While MarshBerry does not believe the overall reversal of E&S to admitted premium flows will be meaningful, the independent wholesale brokers are likely to be the most susceptible to this trend. Should this become a reality, these firms may face meaningful growth, profit and/or operating pressure as they fight to remain relevant when competing against larger firms who are investing meaningfully into systems, data and analytics, technology, processes and colleague development practices.

Valuations of specialty firms remains high

Even with the current high cost of capital, the continued demand (in light of lower seller supply) has driven up valuations for specialty firms in 2025 to reach all-time highs, and this is unlikely to change, as top performers continue to command impressive multiples. Well-run firms (e.g., delegated authority firms that typically grow their top line net revenue at 15% or more with solid underwriting results) are commanding premium valuations in an environment that is already considered frothy by many. Another factor that may drive further demand and even higher valuations is the projected decline in interest rates, which may lead to more investment capital as debt becomes less expensive.

Valuations of specialty firms represented by MarshBerry in 2025 as a multiple of EBITDA averaged 13.89X in up-front consideration. This population averaged a multiple of 19.42x when contemplating the total all-in valuation after post-close growth incentives (e.g., earnouts). All-in valuations of specialty firms increased by over 60% from 2020 to 2025, which speaks to the heightened investor demand.

Specialty Agency Value Comparables Total Enterprise Value

Specialty Market Outlook For 2026

While there is risk of market and economic conditions becoming more challenging, thus further impacting the appetite and/or availability of capital (debt and equity) – for the time being there continues to be robust demand for specialty firms. In 2026, there will likely be continued consolidation of the specialty marketplace, with PE-backed buyers maintaining a large presence. Valuations will likely continue to remain near historic highs amidst a limited supply of quality sellers in a sector with historically strong and consistent growth trends. However, all eyes will be on the changing rate environment and whether or not it materially influences historical growth trends and M&A activity in the specialty marketplace.

Regardless of the above, MarshBerry expects the highest quality specialty firms with solid management teams, strong organic growth, and effective business plans with minimized concentration risks to continue commanding premium valuations in 2026 and beyond.