NEW YORK: Brown & Brown (BRO.N) announced Tuesday it will acquire rival Risk Strategies and its parent company, Accession Risk Management, in a $9.83 billion deal, expanding its capabilities in property and casualty insurance as well as employee benefits.
The acquisition is part of a wave of consolidation in the highly fragmented insurance brokerage industry, where major firms are pursuing scale to strengthen their market positions.
Last year, Aon (AON.N) purchased NFP for $13 billion, while Marsh McLennan (MMC.N) acquired McGriff Insurance Services for $7.75 billion. Arthur J. Gallagher’s (AJG.N) pending $13.45 billion deal for AssuredPartners is expected to close later this year.
Shares of Brown & Brown fell 4.5% in premarket trading following the announcement.
Risk Strategies was founded in 1997 by insurance industry veteran Mike Christian. Its parent company, Boston-based Accession Risk Management, was formed in 2023 to oversee Risk Strategies and insurance wholesaler One80 Intermediaries.
In 2024, Accession reported pro forma revenue of $1.7 billion and placed $15.7 billion in premiums. The company employs more than 5,000 insurance professionals across the U.S. and Canada.
The deal, expected to close in the third quarter of 2025, is projected to increase Brown & Brown’s 2024 adjusted earnings per share by mid-teens percentage. Following the acquisition, the Florida-based firm will merge its programs and wholesale brokerage divisions into a new specialty distribution segment.
BofA Securities, J.P. Morgan Securities and Skadden, Arps, Slate, Meagher & Flom advised Brown & Brown on the transaction.