Insurance broker Brown & Brown has announced plans to acquire Accession Risk Management in a deal valued at approximately $9.83 billion, combining cash and stock considerations.
The transaction, disclosed Tuesday, signals ongoing consolidation efforts within the highly fragmented insurance brokerage sector, as industry players pursue growth through large-scale mergers, according to a Reuters report.
While smaller acquisitions are common in the industry, the magnitude of this deal underscores a trend where firms are willing to pay premium prices to expand their market share or strengthen competitive positioning, Reuters reported. Recent comparable deals include Aon’s $13 billion purchase of NFP last year and Marsh McLennan’s$7.75 billion acquisition of McGriff Insurance Services.
Accession Risk Management, based in Boston, is the parent company of Risk Strategies, founded in 1997 by Mike Christian. The company also owns insurance wholesaler One80 Intermediaries. Both entities serve as intermediaries connecting insurers with a broad range of clients, including commercial businesses and nonprofit organizations, Reuters reported.
Funding for the acquisition will be secured through a combination of a $4 billion equity raise and $4 billion in bonds issued across various maturities. Following the announcement, Brown & Brown’s stock edged down 0.6% in early trading.
The deal aims to strengthen Brown & Brown’s property-casualty and employee benefits divisions. It also enhances the company's presence within the middle-market segment, which caters to firms larger than small businesses but smaller than multinational corporations.
Accession’s workforce includes over 5,000 insurance professionals across the US and Canada. The company has completed more than 190 acquisitions and reported a pro forma revenue of $1.7 billion in 2024, with $15.7 billion in premiums written.
Brown & Brown CEO Powell Brown said that the acquisition represents a significant step toward the company's growth target of surpassing $8 billion in revenue, Reuters reported. He noted that the company's expansion over the past two decades – from approximately $300 million in 2000 to nearly $5 billion last year – has been driven by strategic acquisitions. Brown also said that there is minimal overlap between the two firms’ operations, reducing concerns over market cannibalization.
As part of the transaction, about $1.3 billion of Brown & Brown stock will be issued to the sellers, including approximately $250 million to private equity firm Kelso, Reuters reported. Kelso acquired a majority stake in Risk Strategies from Kohlberg in 2015.
The deal is expected to close in the third quarter of 2025. Upon completion, Brown & Brown plans to integrate its programs and wholesale brokerage businesses into a new segment focused on specialty distribution.
