Amid a backdrop of evolving market conditions, leading insurance brokerage firms—Brown & Brown (BRO), Marsh & McLennan (MMC), Arthur J. Gallagher (AJG), and Willis Towers Watson (WTW)—are demonstrating resilience and capturing new growth opportunities through strategic acquisitions and technology-driven advancements.
Industry experts note that despite near-term headwinds, the insurance brokerage sector is poised to benefit from prudent management and growing global demand for insurance products. Recent years have seen increased consolidation within this traditionally fragmented sector, alongside the rapid adoption of digitization to scale operations and improve efficiency. The sector’s scope encompasses intermediaries offering insurance and reinsurance products, while also providing risk management and managed healthcare services for a broad range of clients.
According to recent analyses, the global insurance brokerage market has been valued at several billion dollars and is forecasted to witness significant growth. This momentum is underpinned by digitalization, demographic shifts such as an aging population, rising awareness among buyers, and increasing needs for retirement and health-related insurance solutions.
To sustain a competitive edge, insurance brokers are actively expanding their product portfolios, tightening underwriting standards, and crafting insurance offerings that prioritize customer needs. Results have also been buoyed by higher premiums, attributed to risk-based pricing models that afford brokers increased commissions.
The industry’s upward trajectory is strongly influenced by persistent merger and acquisition activity. Many of these deals, often valued above $100 million, are driven by the pursuit of specialization and keen interest from private equity investors. Aggressive acquisition strategies have enabled some companies to outpace industry averages. The widespread adoption of advanced technologies—including artificial intelligence, machine learning, and enhanced data analytics—has further allowed brokers to provide personalized services, reduce costs, and improve customer outcomes. Digitalization is expected to not only drive premium growth but also streamline operations and improve profit margins.
Despite these positive developments, the insurance brokerage sector currently ranks in the lower half of Zacks Investment Research’s industry rankings, due in part to recent downward trends in earnings estimates. Nevertheless, several major firms continue to outperform expectations, posting solid earnings and demonstrating operational resilience.
Company Highlights
Brown & Brown, Inc. (BRO): In the first quarter of 2025, Brown & Brown recorded a 6.5% organic revenue increase, propelled by robust net new business across its Retail, Programs, and Wholesale Brokerage segments. The company completed 13 acquisitions during this period, contributing $36 million in annualized revenue. CEO J. Powell Brown remarked on the continued momentum as the company headed into the second quarter, citing steady investment and consistent insurance rate gains across most business lines. (Source)
Arthur J. Gallagher & Co. (AJG): AJG posted a 9.5% organic growth rate across its Brokerage and Risk Management units in Q1 2025. The company expanded its portfolio with 11 tuck-in acquisitions totaling around $100 million in annualized revenue and finalized the acquisition of Woodruff Sawyer, adding over $250 million in annualized revenue. Chairman and CEO J. Patrick Gallagher underscored the company’s competitive strengths, emphasizing niche expertise and deep data analytics resources. (Source)
Marsh & McLennan Companies, Inc. (MMC): During the second quarter of 2024, Marsh & McLennan recorded a 6% organic growth, with adjusted earnings per share (EPS) of $2.41 and total revenue of $6.22 billion. The company’s performance was driven by growth in its Risk and Insurance Services and Consulting segments, supported by increased renewal and insurance rates. (Source)
Willis Towers Watson Public Limited Company (WTW): WTW achieved a 6% organic growth in Q2 2024, edging up from a 5% growth rate in the previous quarter. The company’s gains were attributed to strong new business and robust client retention. Over the past year, WTW shares have appreciated 24.7%, slightly behind the industry average gain of 26.5%. However, WTW’s shares trade at a price-to-forward 12-months earnings multiple of 17.75x, compared to the industry average of 22.63x, possibly representing a value opportunity for investors. (Source)
These companies’ financial robustness reflects the industry’s broader trends: ongoing consolidation, digital transformation, and a strategic focus on acquisitions and operational improvement. The future trajectory of the insurance brokerage sector will likely depend on continuing advancements in technology, evolving client needs, and the ability of firms to adapt to dynamic market forces.
This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. As of June 23, 2025, major players such as Brown & Brown, Marsh & McLennan, Arthur J. Gallagher, and Willis Towers Watson continue to report strong results and are well positioned for continued growth in the evolving insurance brokerage industry.