Lloyd’s of London broker Costero Brokers Ltd., investors of which include US firm Heffernan Insurance Brokers, has acquired Prospect Insurance Brokers for an undisclosed sum.
“It is fantastic to see Costero Brokers expanding with the purchase/merger of Prospect, to be part of the new initiatives going forward, and to be working collaboratively to create innovative solutions for clients in what is an ever-changing and challenging insurance market,” said Costero Brokers executive vice president Nick Murrell, who will be running the firm alongside Prospect Insurance Brokers executive vice president Jamie Webb.
Also based in London, 10-year-old Prospect Insurance Brokers specialises in binding authority, reinsurance, and alternative risk transfer business placed into Lloyd’s, European, and international company markets. The independent Lloyd’s broker has worked on cyber, cryptocurrency, gig economy, drones, and parametric structures.
Costero Brokers, meanwhile, initially provided a property line-slip for habitational and commercial real estate when it came to life in 2017. Now it offers cyber, professional, and financial lines and is looking to expand further into other specialist areas through acquisitions and hiring additional colleagues and teams.
Commenting on the merger, Webb stated: “We are very excited to be a part of the Heffernan and Costero family. The decision was easy as we are culturally aligned as an independent, family-owned business with a strong focus on innovation and attracting the best talent in the market.
“In addition, we are delighted to benefit from the West Coast super-regional retail presence Heffernan brings, the wholesale distribution, and the MGA (managing general agent) distribution through Tangram within the group giving us a full array of distribution possibilities.”
For investor John Tallarida, who is executive vice president at Heffernan Insurance Brokers, the snapped up company “fits perfectly” into their plan of building an independent Lloyd’s broker. “The organisation brings important capabilities and excellent talent to complement our Costero team,” he noted.
Murrell added that the combined specialist business features an experienced roster of market professionals in multi-lines “at a time of mega broker consolidation,” offering assurances that they will be there to provide the individual service clients are now seeking globally.