Brown & Brown's Historic $10 Billion Deal: Consolidation Shakes Markets!

Daytona Beach, USA - Brown & Brown, the well-known insurance broker based in the U.S., is on the verge of a significant milestone with their potential acquisition of Accession Risk Management, the parent company of Risk Strategies. This deal, which could reach around $10 billion, would mark the largest acquisition in Brown & Brown’s history. As reported by Reuters, the interest from Brown & Brown came into play after Howden Group’s acquisition discussions for Accession fell through. This move signifies ongoing consolidation trends within the U.S. broker market, where publicly traded companies are acquiring privately held brokers to bolster their portfolios.

A Changing Landscape

Last year was tumultuous for the insurance sector. The market saw a slowdown in M&A activity in 2023 due to macroeconomic uncertainties. However, that trend turned dramatically in recent months, paving the way for an aggressive push in deal-making. According to PwC, the insurance deals market was bustling, with the number of announced transactions doubling from May to mid-November 2024, crossing over 300 and amassing a value exceeding $20 billion. Brokerages and managing general agencies (MGAs) have been in particularly high demand as firms seek to enhance their competitive edge.

The frenzy isn’t just limited to Brown & Brown’s potential purchase of Accession. Other notable transactions include Arthur J. Gallagher’s awaited acquisition of AssuredPartners, valued at $13.5 billion, and Marsh’s strategic acquisition of McGriff for $7.75 billion last September. With Aon also having completed a $13 billion deal for NFP in April 2024, it’s clear that the sector is shifting gears rapidly.

Brown & Brown’s ambitions are underscored by their activity last year, where they completed 32 acquisitions generating $174 million in annualized revenue. Meanwhile, Accession itself has been on a growth spurt, reporting 10.4% organic growth in 2024 and increasing its total revenue by 12.9% year-on-year to reach $4.81 billion. It’s been a lucrative journey since Accession’s formation in October 2023, overseeing both Risk Strategies and One80 Intermediaries.

The Big Players

As for Risk Strategies, it has carved out a significant position in the market. Previously ranked as the 14th-largest retail broking intermediary in 2023, it generated an impressive $1.45 billion in brokerage revenues. Founded by Michael Christian in 1997, who later became executive chair in 2019, Risk Strategies currently operates under CEO John Mina’s leadership. With its robust growth and strategic acquisitions—over 170 since inception—it’s become a savvy player in the insurance game.

In addition, the deal would offer a liquidity opportunity for Accession’s investors, a move seen as favorable in an environment where equity investments require serious due diligence. As Bain & Company describes, insurers are increasingly focusing on prevention and risk management rather than merely reimbursing losses. With companies exploring various strategies for growth, including technology integration and collaborative partnerships, the insurance landscape is evolving rapidly.

Looking Ahead

Brown & Brown and Accession weren’t available for immediate comment, but as these companies proceed, one can’t help but marvel at the pace of changes in the insurance sector. The reputations of the major players continue to grow, transforming the way brokers and agencies operate. It appears the insurance industry is not just surviving; it’s thriving, making strategic moves amid changing market dynamics. With consolidation at its core, there’s no doubt that this acquisition and others like it will shape the future of insurance in the U.S. and beyond.