Australian broker Honan Insurance strikes 'milestone' private equity deal
Australian commercial insurance broker Honan Insurance Group has entered into a definitive strategic investment deal with US-based private equity firm TA Associates.
Honan chief executive Andrew Fluitsma said the deal is an "important milestone for Honan" as it seeks to further expand in the domestic Australian market and overseas.
Following the transaction, which is expected to close in the second half of 2020 following regulatory approvals, Honan’s group CEO and executive director Damien Honan; CEO Fluitsma; and COO Laurence Basell, will continue to lead the business and be shareholders alongside TA.
Melbourne-based Honan designs, prices and negotiates insurance policies on behalf of corporate clients. The Company’s main verticals are in the corporate, strata, real estate and employee benefits markets, primarily in Australia, New Zealand and Southeast Asia.
“We are very pleased to welcome TA Associates as an investor in Honan,” said Damien Honan. “In choosing to partner with TA, the Honan team was particularly attracted by the firm’s global presence, long history of investing in the insurance brokerage sector and experience in partnering with growing companies. We believe that TA will be a valuable partner as we seek to further grow Honan both in the domestic Australian market and overseas.”
Fluitsma added: “This is an important milestone for Honan as we continue to focus on providing the highest quality advice to our dedicated and loyal customer base, especially in the current challenging environment. The opportunity to bring aboard a long-term, well-respected growth-oriented global investor such as TA, that is fully-aligned and supportive of our business model, is very exciting. We are confident that Honan will benefit from TA’s complementary array of resources and skills.”
Andrew Tay, a senior vice president at TA Associates, said: “With a commitment to providing tailored recommendations and high-quality customer service, Honan has grown significantly over the past few years,” said “We are excited to be investing in Honan alongside a talented management team, and we look forward to building on their track record of growth.”
Edward Sippel, a managing director and co-head of Asia operations of TA Associates Asia Pacific, added: “We have been impressed by Honan’s strong reputation within the commercial insurance brokerage industry and its vibrant corporate culture. We are delighted and honored to be partnering with the Honan management team as they embark on the Company’s next phase of growth.”