Independent, employee-owned: Holborn is playing a different game

As consolidation has swept through the reinsurance broking sector, one independent remains standing firm – and its business model is more relevant than ever, its leaders argue. Holborn is now the only fully employee-owned reinsurance broker in the US. And its growth and success suggest its unique combination of independence, continuity and client-first culture offers a compelling alternative to the mega-brokers.

KEY POINTS
Client-first culture is key
Employee ownership sets it apart
Rising leaders in its ranks

“It’s not about placing a policy and moving on. It’s about making sure the structure we build performs when the market is strained and the pressure is real,” Frank Harrison, its chairman and CEO since 2005, explained in a recent interview.

That strain has indeed been real for many of Holborn’s clients in recent years. A sharp hard market meant some tough negotiations: higher rates and less favourable terms and conditions forced some into difficult strategic decisions. Add to this, economic volatility, inflation and unexpected losses from perils such as severe convective storms and wildfires, and brokers have needed to earn their place at the table.

But Holborn has been well placed to respond. Its broking philosophy, which blends the importance of long-term relationships with advanced analytics and deep experience, has been able to shield clients from some of the tougher edges of a volatile market. “Continuity matters,” Harrison said. “Knowing why a deductible was raised in a hard market, or how a layer was originally structured, provides an advantage when markets shift again.”

He makes the point that whereas some brokers treat every renewal as a fresh start, this means Holborn can revisit past decisions to build on what has been learned. This approach has helped build enduring partnerships with both insurers and reinsurers, where trust and alignment are as important as analytics.

“Make sure the structure we build performs when the market is strained and the pressure is real.”

ESOP gives an edge

This difference in approach is not by chance. A key differentiator in company culture and thus client ethos comes from Holborn’s ownership structure. Through its Employee Stock Ownership Plan (ESOP), implemented in 1998, every employee has equity in the firm. This creates what Gregory Kaiser, the company’s executive vice president, calls “truly unbiased” advice.

“Our success is intrinsically tied to our clients’ success,” Kaiser said. “With no outside shareholders or conflicting interests, we can focus entirely on what’s best for them.”

The ESOP also drives a unique culture within the broker. “It means helping a colleague complete a difficult task for a client even when you get no credit personally,” Kaiser explained. “It means waking up at night with an idea for a client and making sure you capture it the next morning. Everyone is invested in the outcome.”

Holborn’s leadership likes to compare the firm’s talent to a high-performing sports team. While the analogy is not uncommon in business, Holborn can give it some gravitas. Harrison was a world-class decathlete, and Kaiser, a college All-American, excelled in both football and track.

“There are no egos here,” Kaiser said. “The name on the front of the jersey is more important than the one on the back. That alignment makes it rewarding for us—and for our clients.”

This means that despite celebrating its 100th anniversary five years ago, Holborn retains an entrepreneurial edge. Its comparatively small size, with offices in New York, Minneapolis and Kansas City, means ideas can be implemented quickly, without the bureaucracy of larger rivals.

“It means having the freedom and artistic licence to develop and articulate new solutions—no fear of stretching the bounds of what has been done before,” Kaiser said.

Holborn is equally disciplined about what it won’t do. Harrison, who has now been CEO for two decades, has always maintained that Holborn cannot and should not try to be all things to all people. Growth is pursued only with the right clients on the right terms – and if it strengthens client value and culture. It does not chase headlines or scale.

The next chapter

In the context of its long history and the extraordinary tenure of leader Harrison, it is perhaps only natural to now also consider the future. The broker has several rising leaders, including Kaiser, in its ranks and they are already shaping its future strategy and direction. 

Yet new faces will not necessarily mean change. Holborn is doubling down on what has always set it apart: independence, continuity and client focus. Kaiser says the firm will continue to be selective in hiring talent and in the clients that it partners with. It will always seek an alignment of values.

“Trust is everything. Our reputation is everything,” he said. “Holborn has a long history of doing things right by both clients and markets. True teamwork will continue to be our differentiator.”

Frank Harrison, chairman and CEO, and Gregory Kaiser, executive vice president, can be contacted at frankh@holborn.com and gregoryk@holborn.com respectively.

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