Howden is reportedly in discussions to acquire the US-based Risk Strategies, according to sources familiar with the matter.

A report from Bloomberg says that the negotiations involve Risk Strategies' private equity backer, Kelso & Co, but there is no assurance that a deal will be finalized, as per the sources, who requested anonymity due to the confidential nature of the discussions. 

The report noted that Howden has long been viewed as a potential candidate for an initial public offering. The company is owned by 5,200 employee-shareholders along with private equity firms General Atlantic and HgCapital, Canadian institutional investor Caisse de Dépôt et Placement du Québec (CDPQ), and the Howden Foundation.

Analysts also note that acquiring Risk Strategies, one of the largest privately held insurance brokers in the US, would represent Howden’s expansion into the American retail insurance market, a move that has been widely anticipated. 

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

The potential acquisition reflects the ongoing trend of consolidation in the insurance brokerage sector. Recent transactions in the industry include Arthur J. Gallagher & Co.’s agreement to acquire AssuredPartners and Marsh McLennan’s purchase of McGriff Insurance Services.

Earlier this month, Howden also announced that Basel-based reinsurance broker Haakon AG will now operate under the name Howden Re Switzerland, marking the final step in its integration into the Howden brand.

Haakon joined Howden one year ago, and the rebranding reflects the company’s strategic alignment under a unified identity, Howden Re said in a news release.

As part of the transition, Howden Re Switzerland will maintain its offices in Basel and Zurich to ensure close proximity to Swiss clients. The firm’s operations in Asia will continue to be supported by its Malaysia office, along with additional expertise provided by the team in Singapore.

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