Bank acquisitions of insurance brokerages have been on a steady decline for the better part of 15 years. In 2007, these transactions represented approximately 21.7% of total announced insurance brokerage merger and acquisition (M&A) transactions. By 2012, that percentage dropped to 6.4%, and in 2022 was only 2% of total deals.
Additionally, as banks rebalance toward interest-producing revenue streams, there has been an increase in the number of divestitures of fee-based businesses. For the first time in nearly two decades, announced divestitures of bank-owned insurance brokerages have outpaced announced acquisitions.
