US broker Brown & Brown to acquire E&S property MGU Orchid and CrossCover
US insurance brokerage Brown & Brown is set to acquire the largest personal lines excess and surplus (E&S) managing general underwriter, providing specialty homeowners insurance for coastal risks in the Gulf, Southeast, and Mid-Atlantic states.
The company has entered into a definitive agreement to purchase Orchid Underwriters Agency, a specialty underwriter of catastrophe-exposed property insurance, from investment management firm TowerBrook Capital Partners.
The deal includes Orchid’s managing general underwriter (MGU) and wholesaling business, along with its high-net-worth segment and CrossCover Insurance Services.
In partnership with CrossCover, Orchid offers specialty commercial coverages to middle-market insureds.
Orchid and CrossCover will be joining Brown & Brown’s national programmes segment, but will continue to operate as independent entities, including maintaining principal operations in Vero Beach and Tampa, Florida and Cypress, Texas.
The transaction is expected to close by April 2022, subject to standard closing conditions.
John Lumelleau, chairman of Orchid, said: “We are proud of what we have achieved at Orchid and the carrier support and confidence we earned in doing so. Brown & Brown recognized our continuing success and the value we have built. It is especially gratifying to know that our leadership group that made this possible will have the opportunity to continue growing Orchid and CrossCover as part of the Brown & Brown National Program segment.”
Orchid chief executive Steve Carlsen (pictured) added: “The announcement today is a function of the incredible work done by the Orchid team and its sponsors. We are grateful for the financial support and guidance from our partners at TowerBrook and for John Lumelleau’s counsel and mentorship. Orchid and CrossCover have ambitious plans, and we’re eager to join the team at Brown & Brown.”
Jonathan Bilzin, co-chief executive officer of TowerBrook, commented: “On behalf of TowerBrook, I would like to thank the entire leadership team at Orchid for their partnership over the past several years. It has been a pleasure working with them and we are grateful for the significant contributions made by Steve Carlsen and the rest of the management team in developing a number of initiatives that have grown Orchid’s business under our ownership.
“We believe Brown & Brown provides the right platform to foster Orchid’s continued success.”
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