Insurance Broker Valuation Multiples and M&A in 2026

Sector Note · Published 5 November 2026 · Michel Besson, Managing Partner, Deal Ascent

UK insurance broking remains one of the most consistently consolidated sectors in the mid-market: 463 UK insurance distribution transactions have been recorded since 2022, and UK broker deal value reached £3.0bn in the first nine months of 2026, against £2.1bn for the whole of 2025. Capital is plentiful, but it is increasingly selective. For a broker with £1m–£10m of EBITDA, Deal Ascent’s indicative valuation range runs from 7x to 13x EV/EBITDA, and the position within that range is set by what a buyer is actually acquiring — a renewal list, a defensible specialist franchise, or underwriting control and the data that comes with it.

The UK broker market in 2026: well-capitalised and selective

Demand for UK insurance brokers has held up through a period in which most other mid-market sectors slowed. Deal value in the first nine months of 2026 already exceeds the full-year 2025 total by roughly 40%, and the buyer base — UK consolidators, US and international brokers, insurers and private equity — remains deep. What has changed is where the money goes.

Specialty and niche brokers accounted for around one deal in four by volume, but around 85% of total deal value. Commercial brokers that achieve upper-quartile valuations tend to hold a defensible position: proprietary trade schemes, binding authorities, delegated underwriting authority, or long-standing affinity distribution. Regional commercial brokers without those features remain in demand, particularly general commercial books with renewal retention above 90%, but they are increasingly bought as bolt-ons, with tighter integration terms and retention-linked clawbacks.

Sources: Insurance Age, Insurance Times, MarshBerry; S&P Capital IQ as at 2 November 2026; Deal Ascent analysis of 463 UK insurance distribution transactions.

What a UK insurance broker is worth: 7x to 13x EBITDA

For brokers with £1m–£10m of EBITDA, Deal Ascent’s indicative range spans 7x to 13x EV/EBITDA. The range is wide because “insurance broker” covers businesses that sell very different things to an acquirer. A generalist local broker placing business on the open market offers a renewal list; a delegated underwriting business offers pricing control and loss data; a multi-capacity MGA or Lloyd’s coverholder offers a licence, capacity relationships and scarcity. Each step up the ladder reflects an asset that is harder for a buyer to replicate.

Source: Deal Ascent view of indicative EV/EBITDA for UK insurance brokers with £1m–£10m EBITDA, November 2026. Indicative only; individual outcomes depend on financial profile, retention, growth and process.

Want to know where your brokerage sits on this ladder? Speak to Deal Ascent for a confidential benchmark.

What moves a broker within the range

Business model sets the band. Six factors then determine where within it, or beyond it, a particular broker is priced.

Listed insurance broker trading multiples

Publicly listed insurance brokers trade at an average of 12.0x EV/2026E EBITDA (median 12.4x), on average EBITDA margins of 30% and expected sales growth of 9% a year between 2026 and 2028. Acquisitive consolidators sit at the top of the group: Arthur J. Gallagher trades at 14.1x and Goosehead, a franchise platform growing at 18% a year, at 13.5x. Ryan Specialty, a wholesale broker, is the outlier at 8.0x. The listed group is overwhelmingly US and large-cap, so it serves as a reference point for the sector rather than a direct benchmark for a UK broker with £1m–£10m of EBITDA.

Source: S&P Capital IQ market data as at 2 November 2026; Deal Ascent analysis. Consensus estimates.

Precedent transactions: what acquirers have paid

Large insurance broking acquisitions with disclosed financials have averaged 16.3x EV/LTM EBITDA over the past five years (median 15.9x), on EBITDA margins averaging 34%. Grouped by target, the five UK transactions cleared at a median of 17.0x, against 15.0x for the five US targets — led by EQT’s acquisition of a majority stake in specialty and reinsurance broker McGill and Partners at 20.0x, and Brown & Brown’s purchase of UK retail and MGA consolidator Global Risk Partners at 18.5x. Specialty capability and scarcity of scaled UK platforms both feed into that premium.

Source: company disclosures; Deal Ascent analysis. EV in deal currency, rounded; dates are announcement dates.

These are scaled platforms, and the multiples do not transfer directly to smaller businesses. Buyers apply a discount of roughly 20–50% to companies with revenue below £50m, which places the typical multiple for a smaller broker at around 7x–13x depending on business model and financial profile — consistent with the indicative range above. Consideration for smaller transactions is almost never disclosed.

Recent UK transactions at the smaller end of the market

Activity among brokers of £1m–£10m EBITDA is continuous, and the pattern of recent deals reflects the market described above: consolidators buying specialist capability, Lloyd’s access and regional commercial books with strong retention.

Source: Insurance Times, Insurance Age, Insurance Journal, Insurance Business, company announcements. Consideration not disclosed in any of the transactions shown; n/d = not disclosed.

To compare broker multiples with more than 50 other sectors, see our UK valuation multiples by sector, updated monthly with EV/EBITDA medians from over 1,000 listed companies. Thinking of selling? Our guide to selling your business explains the process, timings and fees.

Who is buying UK insurance brokers

Four groups of acquirers are active, and each looks for something different. UK consolidators run buy-and-build programmes for regional commercial books with £1m–£10m of EBITDA, often offering rollover equity alongside deferred consideration. International and US brokers target established specialist books and MGAs, typically from £2m of EBITDA, and more often offer clean cash exits followed by full integration. Insurers and risk carriers buy distribution to protect underwriting flow and scheme channels. Private equity backs scale platforms, typically from £5m of EBITDA, or buys them in secondary transactions.

Source: company announcements; Insurance Age, Insurance Times; MarshBerry; Deal Ascent analysis of 463 UK insurance distribution transactions, 2022 to October 2026. Logos are trademarks of their respective owners and are shown to identify active acquirers only; no relationship with Deal Ascent is implied.

How a broker sale runs, including FCA change in control

A structured sale of an insurance broker typically takes around six months from preparation to completion. The final stage is regulatory: the acquirer must obtain FCA approval for the change in control before completion, and that assessment period sits on the critical path.

Indicative timetable. The FCA assessment period under the Financial Services and Markets Act 2000 runs for up to 60 working days from receipt of a complete notice and can be paused while the FCA requests further information.

From headline price to net proceeds

Most owners of insurance brokers first engage with the market through an unsolicited approach from a single buyer. In that position the buyer sets the price, the timetable and the structure; there is no evidence of what the business is worth to anyone else; diligence tends to run long; and terms are conceded one at a time with nothing to compare them against. In a structured process, credible buyers bid on the same information to the same deadline, price is tested against the market rather than asserted, and earn-out, deferred terms and warranties move under competitive pressure. For a fuller walk-through of the bridges from enterprise value to cash, see What Is My Business Worth?

The headline price is also only the first of three numbers. Enterprise value becomes equity value after net debt and client money adjustments; equity value becomes consideration received after deferred and earn-out elements; and consideration becomes net proceeds after tax. Each bridge turns on definitions negotiated in the sale and purchase agreement. In insurance broking, earn-outs are usually written on renewal retention, so the measurement basis — and how much control the seller retains over the book after completion — determines whether the earn-out is ever paid.

Illustrative; bar heights are not to scale.

This note is intended for information purposes only and does not constitute financial, investment, tax or legal advice. Indicative valuation ranges reflect Deal Ascent’s view as at November 2026; listed multiples are based on consensus estimates as at 2 November 2026; precedent multiples are based on public disclosures. Private-company outcomes depend on the specific financial profile, retention, growth and process, and will differ. Deal Ascent is an appointed representative and is authorised and regulated in the conduct of relevant activities. Specific professional advice should be sought before making any business or financial decision.