Howden Said in Talks to Buy Insurance Broker Risk Strategies

Howden, one of the world’s largest closely held insurance brokers, is in talks to acquire Risk Strategies, according to people with knowledge of the matter.

The talks to acquire Risk Strategies, which is ultimately backed by private equity firm Kelso & Co., are ongoing and there is no certainty a transaction will be completed, the people said, who requested anonymity to discuss confidential information.

Insurance group Howden, which is owned by firms including General Atlantic, HgCapital and Caisse de dépôt et placement du Québec, has long been considered a likely candidate for an initial public offering. The company, previously known as Hyperion, is led by Chief Executive Officer David Howden.

A deal with Risk Strategies, one of the biggest privately-held US brokers, would mark Howden’s long-anticipated expansion into the American retail market.

Representatives for Howden, General Atlantic and CDPQ declined to comment. Representatives for Risk Strategies, Hg and Kelso did not immediately respond to requests for comment.

The deal talks underscore the latest consolidation effort in insurance brokerage, and follows transactions including Arthur J. Gallagher & Co.’s agreement to buy AssuredPartners and Marsh McLennan’s deal for McGriff Insurance Services.

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