INSURANCE

Mar 25 2020

Largest wholesale insurance brokers #Insurance #Brokerage #Merger #- #Acquisition #Market #Report #- #AMGO #Capital #- #Insurance #Agency



Largest wholesale insurance brokers

*******

Largest wholesale insurance brokers

EPIC Insurance Brokers & Consultants announced that Oak Hill Capital Partners will be acquiring a controlling equity position in EPIC through the purchase of The Carlyle Group’s entire ownership stake. EPIC has annual revenue approaching $300 million and over 1,000 employees. According to EPIC, it ranks among the top 20 retail insurance brokers in the United States and is the 10th largest privately held broker in the nation.

Three top 100 insurance brokers will be undergoing a change in ownership as deal activity shows no signs of slowing down. KKR and CDPQ announced that it would be acquiring USI Insurance Services from Onex Corporation in a transaction valuing USI at $4.3 billion. CDPQ is a Canadian institutional fund manager that manages funds primarily for public pension and insurance plans. KKR and CDPQ will have equal ownership in USI after the deal is completed.

AssuredPartners announced that it will be acquiring the largest privately-held insurance broker in California with its purchase of Keenan & Associates. Keenan has over $170 million in annual revenue and will be AssuredPartners’ largest acquisition since its founding.

AssuredPartners expands in California with the purchase of Dealey, Renton & Associates Insurance Brokers (“DRA”) headquartered in Oakland, California. DRA has 78 employees in three office locations and approximately $17 million in revenue.

Marsh & McLennan Agency makes a platform acquisition in the Southeast by agreeing to buy J. Smith Lanier & Co. (“JSL”), which is based out of West Point, Georgia. JSL has annual revenue of approximately $130 million and 600 employees in 21 offices across Georgia, Alabama, Kentucky, Tennessee, and Florida.

A new private equity backed property & casualty and employee benefits broker, Alera Group, was created through the merger of 24 firms across the United States. Through this merger, Alera Group will have $158 million in annual revenue and 750 employees across 15 states. Genstar Capital made an investment leading to the formation of Alera Group.

Risk Strategies Company continues to grow its presence in Florida with the purchase of Advanced Insurance Underwriters (“AIU”). Headquartered in Hollywood, AIU is the fourth largest independent broker in South Florida and has over 140 employees. According to Insurance Journal’s list of top 100 independent P&C agencies, AIU reported approximately $24 million in revenue during 2015.

Alliant Insurance Services expands in the Midwest with the acquisition of Mesirow Insurance Services from Mesirow Financial. Mesirow Insurance Services has annual revenue of approximately $105 million according to Business Insurance’s latest list of 100 largest brokers published in July.

Conner Strong & Buckelew becomes the latest broker to partner with a private equity firm after Century Equity Partners acquired a minority interest in the New Jersey-based firm. Conner Strong & Buckelew spun out of Commerce Bank in 2008 and has approximately 350 employees.

BB&T announced that it agreed to acquire insurance wholesaler, Swett & Crawford, for $500 million in cash. Swett & Crawford is expected to add more than $200 million in annual revenue to BB&T Insurance. The deal will complement BB&T Insurance’s other wholesale operations including CRC Insurance Services, Crump Life Insurance Services, and managing general underwriter AmRisc.

Cooper Gay Swett & Crawford (“CGSC”) announced that it was exploring the sale of its North American business unit, which consists of wholesale broker Swett & Crawford, specialty managing general agencies including J.H. Blades & Co and Creechurch International Underwriters, and a U.S. reinsurance broker. An Insurance Journal article provides more color on the underlying reasons for the sale, which include reducing corporate debt.

The latest industry rumor involves Confie and its private equity owner ABRY Partners exploring a sale of the personal lines and small commercial insurance broker. According to a Reuters article, Confie is expected to generate earnings before interest, taxes, depreciation, and amortization (“EBITDA”) of $134 million this year. ABRY Partners acquired a majority interest in the firm, then known as Confie Seguros, in 2012.

USI Insurance Services announced its first acquisition in North Carolina with the purchase of the employee benefits business of Benefit Controls of the Carolinas. Benefit Controls, which is headquartered in Charlotte, was previously ranked in Business Insurance’s largest 100 brokers list and at that time reported 2012 revenue of $23 million.


*******
SOURCE:

Written by admin