(Reuters) -Insurance broker Brown & Brown will buy rival Accession Risk Management in a $9.83 billion deal, the companies said on Tuesday, adding to a string of mega-mergers in recent years as industry players look to consolidate.
While small buyouts are typical in the highly fragmented industry, the deal highlights that firms are willing to pay top dollar for acquisitions that significantly enhance their market presence or strengthen competitive edge.
Last year, Aon acquired NFP for $13 billion, while Marsh McLennan bought McGriff Insurance Services for $7.75 billion. Arthur J. Gallagher’s $13.45 billion deal for AssuredPartners is expected to close later this year.
Despite economic uncertainties dampening overall dealmaking activity, some firms are cautiously moving forward with their acquisition plans, driven by long-term priorities.
Brown & Brown filed for a sale of shares worth $4 billion to fund the deal. Its stock dropped 3% before the open.
Boston, Massachusetts-based Accession is the parent company of Risk Strategies, which was founded in 1997 by insurance industry veteran Mike Christian. It also houses insurance wholesaler One80 Intermediaries.
Both companies connect insurers with customers and have a diverse client base, including commercial firms and nonprofit organizations.
Accession reported pro forma revenue of $1.7 billion and placed $15.7 billion in premiums in 2024. The group has more than 5,000 insurance professionals throughout the U.S. and Canada.
Under the deal, which is expected to close in the third quarter of 2025, Brown & Brown will combine its programs and wholesale brokerage segments into a new specialty distribution segment.
BofA Securities, J.P. Morgan Securities and Skadden, Arps, Slate, Meagher & Flom advised the Florida-based company on the transaction.
(Reporting by Arasu Kannagi Basil and and Niket Nishant in Bengaluru; Editing by Shilpi Majumdar)
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