Wave of consolidation sweeps through Canadian brokerages

Canada’s property and casualty (P&C) insurance brokerage sector is undergoing a new wave of consolidation, with mid-sized firms increasingly being absorbed by national and private equity-backed acquirers, according to the Smythe PC Insurance Brokerage Report 2025.

The report shows that merger and acquisition activity remained robust through 2024 despite economic headwinds and high borrowing costs.

“While interest rates and capital costs are tempering some valuations, demand for high-quality brokerages has not materially slowed,” the report noted.

Average deal multiples were reported between 8.0 and 10.5 times EBITDA for top-performing brokerages, with privately owned firms commanding premium pricing when demonstrating strong organic growth and retention.

Smythe’s data also pointed to a tightening ownership landscape, with the top 10 brokerage groups now accounting for over 60 per cent of market share, up from less than 40 per cent a decade ago.

The report identifies succession challenges as a key factor driving consolidation, particularly among smaller independent firms. “Aging ownership demographics and a limited pipeline of internal successors continue to drive sales to larger consolidators,” the authors state.

For brokers, the report warns, consolidation is reshaping competitive dynamics. National players are securing scale advantages in technology, compliance, and insurer relationships – capabilities that regional brokers often struggle to match. “Scale remains the differentiator in profitability and operational efficiency,” Smythe concludes.

Major Canadian Insurance Brokerage M&A (2020–2025)

2025

• BrokerLink (Intact subsidiary) acquired Crosbie Job Insurance (Newfoundland), Chris Mellor Insurance Brokers Ltd. (Ontario), and Leibel Insurance Group (Alberta).
• BrokerLink also acquired Insure Exact Insurance, ThinkInsure, First Fruits Insurance, and Costen Insurance – strengthening its Ontario and Alberta footprint.
• BrokerLink continued its acquisition spree with Avergate Insurance, Keyes Insurance Brokers, and CDM Insurance Brokers.
• Westland Insurance acquired Forefront Insurance Inc. (Alberta), expanding its commercial and personal lines business in Western Canada.
• Westland Insurance completed its purchase of Paul Ayotte Insurance Brokers Ltd. (Ontario), adding to its Ontario expansion strategy.
• Westland Insurance also finalized a separate transaction for PAIB in Cochrane, Ontario.
• Abry Partners invested in Ontario-based Oracle RMS, marking a significant private equity move into the mid-sized brokerage market.

2024

• Westland Insurance acquired M. Butler Insurance (Niagara Falls, Ontario), expanding in southern Ontario.
• Westland Insurance also purchased Canadian Special Risks, a specialty MGA focused on niche commercial programs.
• BrokerLink announced acquisitions of Law Insurance (Ontario) and F.M. Davidson (Alberta).
• Lee Equity Partners made a major investment in Axis Insurance, reinforcing private equity’s role in the sector.

2023

• BrokerLink acquired URS Insurance (Ontario) and several other small regional brokerages as part of its ongoing consolidation program.
• McDougall Insurance expanded through its merger with McFarlan Rowlands Insurance Brokers in Ontario, backed by Definity Financial.
• Navacord continued its national expansion with multiple bolt-on acquisitions across Alberta, British Columbia, and Ontario.
• Hub International acquired Clearpoint Advisory Group, enhancing its group benefits and wealth segment.

2022

• BrokerLink continued an active national acquisition program, completing more than a dozen transactions across multiple provinces.
• Westland Insurance completed the acquisition of Storm Insurance Group, one of its largest deals to date, adding MGA and digital capabilities.
• Navacord entered Atlantic Canada through partnerships with regional firms including WCL Bauld Insurance and Cooke Insurance Group.
• Gallagher expanded its Canadian retail and benefits operations through several regional acquisitions.

2021

• Navacord and Westland Insurance both recorded record years for acquisitions, each closing more than 20 transactions.
• Definity Financial acquired McDougall Insurance & Financial, establishing a hybrid carrier–broker ownership model.
• BrokerLink expanded aggressively in the Prairie provinces, acquiring several Alberta-based independents.

2020

• Navacord received a major investment from Swiss private equity firm Madison Dearborn Partners, fueling a wave of consolidation that continued through the next four years.
• Westland Insurance secured external financing to accelerate its national acquisition strategy, marking the beginning of its transformation from a regional brokerage to a coast-to-coast consolidator.