Brown & Brown buys leading UK insurance broker Global Risk Partners
US-based broker Brown & Brown is to acquire Global Risk Partners (GRP), one of the UK's largest independent insurance intermediaries that operates retail broking, specialist MGA, network and Lloyd's businesses, with annual revenue of approximately $340 million.
GRP, the London Market focused consolidator launched in 2013 by Peter Cullum, David Margrett and Stephen Ross, controls or influences GWP of £1,800m following a string of deals in 2021, including the acquisition of Marsh Networks and WTW Northern Ireland.
GRP is “one of the top three independent brokers in the UK”, with more than 2100 employees in 110+ locations, serving nearly half a million personal and commercial customers.
Florida-based Brown & Brown claims to be the fifth largest US and sixth largest international brokerage firm with 12,000 strong team and 300+ locations across the US and select global markets.
J. Scott Penny, chief acquisitions officer of Brown & Brown, Searchlight and the management ownership team of GRP have entered into an agreement to acquire GRP's insurance operations.
The transaction is expected to close in the third quarter of 2022, subject to certain closing conditions, including the receipt of required regulatory approvals.
Following the deal, GRP will operate within the Brown & Brown Retail segment and will continue to be led by Mike Bruce (pictured middle), global chief executive officer of GRP. Bruce will report to Barrett Brown (pictured right), president of the retail segment and executive vice president and serve as a member of the Brown & Brown senior leadership team.
Bruce said there will be no changes to the current management structure, no job losses and the portfolio of GRP brands will stay unchanged for the time being.
"This is a superb deal for GRP," Bruce commented. " Brown & Brown share a similar entrepreneurial ethos to us, and their ownership will bring a long-term perspective which opens up new opportunities for growth and provides the ideal springboard for continued strategic investment in GRP's team and digital infrastructure."
J. Powell Brown (pictured left), president and chief executive officer of Brown & Brown, hailed the acquisition as a perfect growth opportunity for the company in the UK and Ireland. " GRP's position as an industry leader in the U.K., their experience in international markets and generation of new market segments will allow us to further expand our international footprint and broaden the scope of our global capabilities," he said.
Barrett Brown added: "We are very excited to have Mike Bruce, GRP leadership, and their talented teammates join the Brown & Brown team. Like GRP, we are very proud of our deep experience, credibility and capabilities that allow us to help customers of all sizes and geographic locations. The addition of GRP, with their footprint across the U.K. and Ireland, helps us broaden our reach. Their highly successful acquisition experience will help us accelerate our growth on a global scale and expand our market relationships."
Andrew Frey, partner at Searchlight, commented: “GRP has outperformed our expectations since we acquired the business in 2020. Its customer-centric, data-driven expertise and strong community presence have created significant value for our investors. We are confident that Brown & Brown will be excellent custodians for the business as it embarks on the next stage of its journey.”
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