U.S. dealer Brown & Brown Inc. has entered into an settlement to accumulate International Threat Companions (GRP) from its non-public fairness proprietor Searchlight Capital Companions L.P.
The acquisition, which is topic to regulatory approval, is anticipated to shut within the third quarter of 2022. Brown & Brown stated the deal will assist it set up itself as a significant drive within the UK retail insurance coverage market.
Monetary particulars of the deal weren’t disclosed.
London-based GRP was launched in 2013 by Peter Cullum, David Margrett and Stephen Ross. With annual income of roughly $340 million, GRP is without doubt one of the prime three impartial brokers within the UK, servicing almost half 1,000,000 private and industrial prospects. GRP controls or influences gross written premiums of £1.8 billion (US$2.3 billion), following a string of offers in 2021, together with the acquisition of Marsh Networks and WTW Northern Eire.
GRP group consists of 4 pillars of operations: retail broking, specialist MGA, community and Lloyd’s companies. The corporate employs greater than 2,100 insurance coverage professionals in additional than 110 places all through the UK and Eire.
GRP will function throughout the Brown & Brown Retail section and can proceed to be led by Mike Bruce, world chief govt officer of GRP. Following the completion of the transaction, Bruce will report back to Barrett Brown, president of the Retail section and govt vp. Bruce additionally will function a member of the Brown & Brown senior management crew.
In an announcement, Bruce stated there shall be no modifications to the present administration construction, no job losses and the portfolio of GRP manufacturers will keep unchanged in the interim.
Daytona Seaside, Fla.-based Brown & Brown is a publicly traded enterprise that posted revenues of US$3.1 billion in 2021. It’s the fifth largest U.S. dealer and sixth largest worldwide brokerage agency.
Brown & Brown’s present subsidiaries within the UK and Eire embody O’Leary Insurances, a dealer within the Republic of Eire, and its wholly owned subsidiary Decus Insurance coverage Brokers Ltd., a Lloyd’s coverholder. In February this 12 months, Brown & Brown entered into an settlement to accumulate BdB Ltd., a UK-based specialist wholesale dealer that gives entry to specialty merchandise within the UK and Europe.
“We consider that aligning firms with frequent values will result in shared success. Mike Bruce and the crew at GRP are like-minded people which have a disciplined deal with doing what’s finest for his or her prospects, teammates and provider companions. GRP’s place as an trade chief within the UK, their expertise in worldwide markets and era of latest market segments will enable us to additional broaden our worldwide footprint and broaden the scope of our world capabilities,” stated J. Powell Brown, president and chief govt officer of Brown & Brown, in an announcement.
“GRP’s hub and spoke mannequin has created a extremely profitable development engine in lower than a decade. In our discussions with Mike Bruce and the crew, we’ve been impressed by the entrepreneurial, owner-driven tradition that exists all through, each on the heart, among the many retail broking companies throughout the UK and Eire, and within the MGA and London Market divisions,” he added (in a separate assertion issued by GRP).
“The addition of GRP, with their footprint throughout the UK and Eire, helps us broaden our attain. Their extremely profitable acquisition expertise will assist us speed up our development on a world scale and broaden our market relationships,” stated Barrett Brown, president of the Retail section.
“It is a very good deal for GRP. Brown & Brown’s possession will convey a long-term perspective which opens up new alternatives for development and gives the perfect springboard for continued strategic funding in GRP’s folks and digital infrastructure. Our shoppers may also profit from Brown & Brown’s long-established and valued relationships with U.S. insurers,” in line with GRP’s CEO Bruce.
“Brown & Brown share an analogous entrepreneurial ethos to us and make investments closely of their folks. Specifically, they’ve a really excessive share of teammates proudly owning shares, giving the entire firm, at each degree, an opportunity to share within the total success of the mixed group,” Bruce continued.
He described Searchlight Capital Companions as an “distinctive” non-public fairness proprietor because it acquired GRP in 2020. “Due to their continued funding all through that interval, each in know-how and other people, the enterprise is a extremely engaging proposition, and Brown & Brown will leverage these capabilities going ahead,” he added.
Supply: Brown & Brown and International Threat Companions
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