Brown & Brown, the fifth-largest US and sixth-largest international brokerage firm, has entered into an agreement to acquire Global Risk Partners (GRP) from Funds advised by Searchlight Capital Partners, L.P. (Searchlight).
Founded in 2013, GRP is one of the UK’s largest independent insurance intermediaries and operates retail broking, specialist MGA, network, and Lloyd’s businesses. It acquires businesses, teams, and portfolios with niche, non-commoditised, specialty propositions and solid profitability.
Subject to regulatory approval, the acquisition is expected to be completed in the third quarter of 2022 and see Brown & Brown become a major force in the UK retail insurance market.
Brown & Brown president and CEO J. Powell Brown (pictured top) said the deal is a perfect opportunity for the brokerage to expand in the UK and Ireland, with GRP being a great fit to the business and its growth strategy because of its experienced leadership team and similar “values of honesty, integrity, innovation, solutions mindset, and discipline.”
“GRP’s hub model has created a highly successful growth engine in less than a decade. In our discussions with Mike Bruce (GRP CEO) and the team, we have been impressed by the entrepreneurial, owner-driven culture that exists throughout, both at the centre, among the retail broking businesses across the UK and Ireland, and in the MGA and London Market divisions,” he continued.
“GRP’s particular focus on retail commercial broking for SMEs is a great market strategy and is consistent with components of our own approach in the US. In Lonmar Global Risks, we will benefit from a greatly increased presence in the London market.”
As part of the agreement, Bruce (pictured below) will continue as GRP group CEO, the current management structure and other employees will remain, and its portfolio of brands will remain unchanged for the time being.
Commenting on the acquisition, Bruce said he expects the deal with Brown & Brown to bring a long-term perspective and new growth opportunities and provide the ideal springboard for continued strategic investment in the company’s people and digital infrastructure.
“Our clients will also benefit from Brown & Brown’s long-established and valued relationships with US insurers,” he added. “Brown & Brown share a similar entrepreneurial ethos to us and invest heavily in their people. In particular, they have a very high percentage of teammates owning shares, giving the whole company, at every level, a chance to share in the overall success of the combined group.”
The announcement of GRP’s acquisition came after Brown & Brown entered into an agreement to acquire BdB Ltd, a UK-based specialist wholesale broker providing access to specialty products in the UK and Europe.