24 firms combine to form 14th biggest privately-held insurer in US
Some 24 independent employee benefits, property/casualty, risk management and wealth management firms announced have joined forces to form Alera Group, a new independent national insurance brokerage and wealth management firm, with backing from private equity firm Genstar Capital.
Alera Group becomes the 14th largest privately held insurance firm and 7th largest privately held employee benefits firm in the US. It was formed with investment from Genstar Capital and brokerage assistance from consulting and investment banking firm Marsh, Berry & Company.
The new organization has $158 million in annual revenues and more than 750 employees in 40 offices across 15 states. This merger marks the first time that 24 independent firms in this industry have combined forces.
The company will be led by chief executive Alan Levitz, chief finance officer Billy Corrigan, Rob Lieblein (chief development officer) and Peter Marathas (chief legal counsel).
“We are partnering with an exceptional leadership team founded on the reputation of excellence, which is fostered within these 24 foundational firms,” said Ryan Clark, president and managing director at Genstar.
“Our prior investments and experience in the insurance distribution space will help accelerate the growth of Alera Group as we provide capital to support the strategic and financial objectives of this new company.”
Levitz said: “Our clients’ needs are changing and, frankly, our industry has been slow to respond. We brought together this hand-picked group to do more – and to be more – for our clients and employees. Clients will see two benefits rarely delivered by a single organization. First, they will get the combined resources, technical experience and best practices of a larger firm. Second, they will continue to receive the personal service and independent decision-making power of a local business. Our goal is to set a new, higher standard for their experience.”
Lieblein added: “Our committed focus on clients will lead to growth both organically and through strategic acquisitions. Alera Group’s business model provides a unique opportunity for other entrepreneurial financial services firms to grow their business. This is a chance to be part of a larger, innovative organization while retaining equity in Alera Group.”
