American Growth Insurance Targets Agency Consolidation in Competitive M&A Environment

Independent insurance agency owners contemplating a sale are facing a notably reduced pool of potential buyers compared to two years ago, even as the number of agencies seeking to exit the market surges. This trend sets the stage for American Growth Insurance (AGI) as it takes its first step into the acquisition arena with the purchase of Baltimore's Heller-Kowitz Insurance Advisors, signifying the start of AGI’s blueprint for establishing a network of operator-led agencies in the Mid-Atlantic region.

Financial particulars of the AGI acquisition remain undisclosed, but the company is backed by Rockbridge Growth Equity and Atomic. A concerning trend over the past four years shows a decline in unique acquirers in the insurance brokerage mergers and acquisitions (M&A) scene, dropping from 104 in 2024 to 95 in 2025, according to OPTIS Partners. Meanwhile, there are still approximately 30,000 independent agencies operating with revenues under $1.25 million, most of which lack a concrete succession plan.

For agency owners, this scarcity of buyers alters the dynamics of negotiations, affecting pricing power and the overall attractiveness of new entrants into the market. In terms of overall deal volume, OPTIS Partners reports a reduction, with only 646 agency transactions in the past year—the lowest figure since early 2019. Notably, private equity-backed and hybrid buyers accounted for 75% of these deals, with 80% of transactions occurring in the second quarter of 2026. Among the 68 different buyers in the first half of 2026, 37 were backed by private equity, including six making their inaugural agency acquisitions, further slowing the pace for established consolidators.

Heller-Kowitz, founded in 2014 by Steve Heller and Brian Kowitz, has garnered a strong reputation with its Reagan Consulting Best Practices agency status, providing personal lines, commercial lines, employee benefits, and life insurance. Kowitz noted that his agency had received various acquisition offers over the years; however, many of these proposals seemed interchangeable.

“We've received interest from many potential acquirers over the past several years, but their proposals were largely the same,” Kowitz said. AGI's distinctive approach drew his attention. “AGI’s structure stood out. We recognized a unique opportunity to combine operational excellence with purposeful leadership; creating a long-term strategy that prioritizes our clients' well-being while leveraging advanced technology and AI-driven innovation,” he stated. “We believe this partnership positions us to deliver even greater value, efficiency, and service for our clients for years to come.”

Heller emphasized the importance of operational continuity and cultural preservation post-sale, a consideration that every agency owner must ponder. “We are committed to adopting technology that drives scalability and operational excellence without compromising the culture that defines who we are,” he remarked.

According to AGI, its model was developed prior to the Heller-Kowitz acquisition, supported by a year-long pilot project that elevated average agency profitability by over 50% through enhancements in revenue and productivity. AGI has highlighted a governance structure that allows partner firms a voice in strategy and technological decisions.

AGI articulates its value proposition based on a scale gap smaller agencies struggle to bridge independently. Citing data from MarshBerry, AGI states that the 50 largest US brokers capture 96% of the industry's revenue, leaving independent competitors with limited resources to invest in technology or growth without external capital.

AGI CEO Brian Morgan highlights the synergy of operational experience and technology as key to the future of insurance. “We believe the future of insurance will be built by combining great operators with great technology,” Morgan noted. “Heller-Kowitz is exactly the kind of agency we want in our network: strong client relationships, deep expertise, and a reputation for service. The real value is becoming an AI-native company, not just using AI point solutions.”

AGI’s expansion strategy aligns with broader trends; for instance, the recent merger of Ensurise LLC with WSMT Insurance in March 2026, reflecting a dynamic Mid-Atlantic market where agency consolidation remains active. By the end of May 2026, there were 241 announced US brokerage deals, down 5.1% compared to the previous year, with private equity-backed buyers making up 70.5% of this total.

For agency owners in the region, AGI represents one of several potential options for those considering a sale. Following its initial acquisition, AGI aims to pursue additional brokerage operators looking to gain scale, enhance automation, and broaden their carrier networks while preserving the client relationships critical to the success of each agency.

As AGI prepares for its next moves, the effectiveness of its strategy in a market characterized by a dwindling number of buyers and an increasing number of sellers will be pivotal in determining its future success.