Business Moves
Arthur J. Gallagher, Willis Re
Arthur J. Gallagher & Co. has agreed to acquire the treaty reinsurance brokerage operations of Willis Towers Watson, just weeks after a previous Gallagher deal to buy Willis Re fell through when brokers Aon and Willis terminated their $30 billion mega-merger agreement.
Under the new agreement, Gallagher will acquire the combined operations for an initial gross consideration of $3.25 billion, and potential additional consideration of $750 million subject to certain third-year revenue targets.
In the previous deal, Gallagher had agreed to buy Willis Re and other assets for about $3.6 billion.
Willis had agreed to sell the reinsurance unit to satisfy concerns of European regulators over preserving competition if they approved the Aon-Willis merger. That giant merger and the Willis Re and other divestments were cancelled when U.S. regulators objected to the merger on antitrust grounds.
Willis Towers Watson said on Aug. 3, just days after the planned sale to rival Arthur J. Gallagher fell through, that it was considering strategic alternatives for Willis Re and that a sale of Willis Re was still possible, but the company did not then identify a buyer.
The operations being acquired by Gallagher include all of Willis Re’s treaty reinsurance brokerage operations. For the year ended Dec. 31, 2020, these operations generated $745 million of estimated revenue and $265 million. Willis Re’s treaty reinsurance business operates in 24 countries, places over $10 billion of premium annually and represents more than 750 insurance and reinsurance company clients.
Gallagher said it intends to finance the transaction using cash on hand. The deal is expected to close during the fourth quarter of 2021. Gallagher said integration is expected to take roughly three years and cost roughly $250 million.
Gallagher is headquartered in Rolling Meadows, Illinois.
DUAL, Align Financial Holdings
London-based DUAL, the underwriting arm of Howden Group Holdings, has agreed to acquire Align Financial Holdings, a specialist general agency and underwriting management group in California.
San Diego-based Align underwrites more than $630 million gross written premium on an annualized basis through its commercial casualty, commercial property catastrophe, personal property, and surety businesses.
DUAL said the acquisition creates an international managing general agency group with 1,000 employees in 16 countries, more than 80 capacity providers, and 7,000 broker partners.
Kieran Sweeney, founder and CEO of Align, will lead the combined U.S. businesses, supported by Jim O’Connor, CEO of DUAL North America, and John Johnson, president of Align. Sweeney will also become executive chairman of DUAL Group globally and a member of the Howden Group Executive Committee. Current DUAL Group Non-Executive Chairman, David Ibeson will become a non-executive director.
The acquisition is subject to completion and regulatory approval.
Relation Insurance Services, The SIG Insurance Agencies
Relation Insurance Services Inc. acquired the assets of The SIG Insurance Agencies. The partnership with SIG strengthens Relation’s existing capabilities and further expands the platform’s geographic presence in the Northeast.
Headquartered in Connecticut with additional operations in New York, New Hampshire and Rhode Island, SIG is an independent agency in the Northeast. SIG focuses on commercial and personal lines insurance products, employee benefits and financial services products.
It is led by Brian Rogers and John Cody, who will continue in their company’s leadership. All 65 of SIG’s employees will join Relation.
Relation is an insurance brokerage that offers risk-management and benefits-consulting services through its family of brands across the United States. It is a privately held corporation backed by Aquiline Capital Partners, a private equity firm based in New York and London.
Canary Blomstrom Insurance Agency, GoodWorks Financial Group
Canary Blomstrom Insurance Agency of Agawam recently became a member of GoodWorks Financial Group, a national network of insurance agencies, according to Canary Blomstrom president Sandy Brodeur. The agency will retain its name, staff and location, and Brodeur will continue to serve as president.
By joining GoodWorks, Canary Blomstrom will partner with Wheeler & Taylor Insurance of Great Barrington, Massachusetts, to broaden its insurance offerings. Wheeler & Taylor is GoodWorks Financial’s flagship national agency.
Canary Blomstrom offers personal insurance, and sells life, long-term-care and disability insurance and annuities. Wheeler & Taylor offers insurance and real estate brokerage operations from its headquarters in Great Barrington, Massachusetts.
GoodWorks Financial Group is a network of common-ownership companies.
The Hilb Group, MillBrook Benefits and Insurance Services
The Hilb Group acquired Massachusetts-based MillBrook Benefits and Insurance Services LLC, strengthening its presence throughout New England.
Based in East Longmeadow, Massachusetts, MillBrook specializes in benefits solutions for businesses and their employees. Agency Principal Pete Miller and his team of will be joining Hilb Group’s New England regional operations.
The Hilb Group is a property/casualty and employee benefits insurance brokerage and advisory firm headquartered in Richmond, Virginia.
McGowan, Arbanas & Associates
The McGowan Companies acquired the assets of Arbanas & Associates in Grosse Pointe Farms, Michigan.
Arbanas specializes in writing professional liability for accountants, lawyers, architects, offering multiple professional liability programs.
Arbanas joins McGowanPRO, also a leading writer of professional liability. After the transaction, the staff of McGowanPRO will remain in place, led by Gary B. Sutherland.
Arbanas’ policyholders gain access to the products and capabilities offered by McGowanPRO. Coverage will be available to policyholders in all 50 states and Washington, D.C.
With the asset purchase agreement, Arbanas sold certain of its assets, but not its liabilities, to McGowan Consolidated Insurance Holdings Group Inc. or one of its subsidiaries/affiliated companies. Arbanas was not merged with or into McGowan, and was not consolidated with or into McGowan.
Alera Group, Risk Consulting Partners
Deerfield, Illinois-based Alera Group acquired Risk Consulting Partners, an agency that specializes in working with private equity firms and assessing risk exposures across all companies in their portfolios.
RCP serves businesses with $25 million to $1 billion in revenue. The RCP team will continue serving clients in its existing roles. Alera Group is an independent, national insurance and wealth management firm.
Hub International Limited, Dissinger Reed
Global insurance broker and financial services firm, Hub International Ltd., acquired the assets of Dissinger Reed LLC, located in Overland Park, Kansas.
Dissinger Reed is a risk agency that focuses on the insurance needs of collegiate athletic departments and state high school associations.
Christian Reed, owner and CEO of Dissinger Reed, and the agency’s team will join the Hub Mid-America region.
Alliant Insurance Services, Benefit Concepts Inc.
Alliant Insurance Services acquired group and individual benefits agency, Houston-based Benefit Concepts Inc.
BCI provides a range of employee benefits products and services to businesses and individuals. BCI is also a general agent providing unique support to other agencies in the marketplace.
BCI and its more than 100 employees will join Newport Beach, California-based Alliant and will continue serving clients and broker partners from its current Houston headquarters under the BCI name and brand.
Emergent Insurance Solutions
Doug Phenix, founder of Texas Printers Insurance Agency, is now leading a newly established agency, Emergent Insurance Solutions, based in Houston.
Phenix, president of EIS, has more than 30 years of experience specializing in numerous industries. The new agency offers personal and commercial insurance, along with employee benefits products and services.
King Insurance, Robert Blakeley
King Insurance, a full-service insurance brokerage firm that provides a variety of property/casualty as well as employee benefits solutions, has acquired Robert Blakeley Insurance.
Robert Blakeley, based in Leesburg, Fla., has been insuring businesses and individuals in central Florida since its inception in 2002. The firm offers an array of insurance products focused primarily on commercial and personal property/casualty. Blakeley employees will continue operating out of their current locations and servicing clients under King Insurance.
Risk Strategies, Danna-Gracey
Risk Strategies, a national specialty insurance brokerage and risk management firm, has acquired Danna-Gracey, a specialist in medical malpractice insurance headquartered in Delray Beach, Florida.
Danna-Gracey is an independent medical malpractice insurance agency in Florida dedicated to insurance coverage placement for doctors and other health care providers.
Risk Strategies’ Health Care Practice is a national specialty team offering all lines of insurance and reinsurance for all types of health care organizations.
Alliant, ASURA Risk
Alliant Insurance Services has acquired Northern California-based ASURA Risk in San Ramon, Calif.
Kevin Kilty, principal with ASURA Risk, along with fellow principals Greg Miller and Jon Wheeler, and the entire ASURA team, will join Alliant and continue servicing clients from the San Ramon headquarters.
ASURA provides commercial insurance, employee benefits, and risk management services throughout California. Alliant is a national distributor of diversified insurance products and services.