With the second quarter coming to a close quickly, we are half way through the year and here is a summary of the mergers and acquisitions in the insurance world so far this year. According to the FactSet MergerStat Monthly Review (June 2011), the insurance sector is one of the sectors that saw the biggest increases in M&A deal activity in the second quarter with an increase of 48% in transaction volume for March through May compared to the same 3 month period last year.

This continues after strong activity in the first quarter. According to Leaders Edge Magazine, during the first quarter 2011 through April insurance deal volume was up by over 25% from the same time period last year with 94 announced deals.

What kinds of firms are being acquired? According to Frank Robertson, an Associate at MidCap Advisors, "buyers in the insurance industry continue to make strategic acquisitions of firms that have specialized units and targets that can produce growth in specific products or locations."

According to Leaders Edge Magazine, the top three types of firms acquired, out of the transactions announced from February through April 2011, were Full Service Firms (27 transactions), P/C Commercial Firms (20 transactions) and Benefits Firms (19 transactions).

Who are the most active buyers? Insurance Brokerage firms are by far the top buyers interested in acquiring in this industry and Banks and Financial Institutions come in second, although much further down by volume. Hub International (Hub) is the top buyer through April with six acquisitions in the month of April, bringing the total for Hub through April up to 10 acquisitions. Brown & Brown is also very active and close behind Hub with nine acquisitions while Arthur J. Gallagher & Co. comes in third with six acquisitions through April 2011.