Deal count for the fourth quarter of 2014 was the second most active quarter on record with 91 announced transactions. The total deal count for 2014 (as of Jan. 12, 2015) was at 321 (U.S. based transactions). This was a 43 percent increase over the number of announced transactions in 2013 and only four deals shy of the all-time record of 325 set back in 2012, prior to the capital gains tax rate increase. For the fourth quarter of 2014, 29 deals closed in October, 27 deals closed in November, and December, historically one of the most active months for deal activity, had 35 deals announced.
In 2014, 46 percent of all acquired agencies were property/casualty (P/C) firms, 31 percent were multi-line agencies, and 23 percent were employee benefits firms.
The wholesale segment, with 63 announced deals in 2014, increased deal flow by 75 percent and comprised of just less than 20 percent of the total deal count.
Private-equity backed and independent agencies accounted for slightly more than 70 percent of all deal activity in 2014.
Public brokers increased deal count from 27 closed transactions in 2013 to 52 in 2014, and accounted for 16 percent of the total deal activity in 2014.
Insurance companies, banks and other buyers remained relatively flat compared to the prior year’s deal flow, and accounted for 13 percent of U.S transactions in 2014.
The top five buyers for the year represented 33 percent of all deal activity and the top 10 accounted for 44 percent.
After falling to second behind AssuredPartners Inc. in 2013, Arthur J. Gallagher & Co. (Gallagher) regained the top spot with 31 announced deals, nine coming in the fourth quarter. Gallagher’s acquisition appetite appeared to be fairly evenly spread between retail, wholesale, P/C, multi-line, and employee benefits firms. Ten of Gallagher’s transactions were employee benefit firms and seven were wholesale-related agencies. In addition to the 31 announced U.S transactions, Gallagher closed 12 international deals in China, Australia, New Zealand, Canada, Peru, and the U.K.
AssuredPartners Inc. was second on the deal count list with 25 acquisitions, which was an increase over the industry leading 20 deals they closed in 2013. Eight of these deals were completed in the fourth quarter.
Hub International Limited closed 21 U.S. transactions during 2014, and was also very active in Canada, where they acquired 10 agencies.
Acrisure LLC and Confie Segeros completed 16 and 13 deals during 2014, respectively. For the most part, Acrisure targeted agencies in the Northeast and Confie Segeros acquired non-standard auto agencies.
The top 10 buyers as measured by deal count were rounded out by USI (10), Marsh & McLennan (10), Digital Insurance Inc. (6), Risk Strategies Co. (5), National Financial Partners Corp. (5), CBIZ, (5), World Insurance Associates (5), and Edgewood Partners Insurance Center [EPIC] (5).
As you can see, the acquisition marketplace was very good in 2014. Private equity continued to flood the market, public brokers substantially increased activity, the wholesale market continued to gain momentum, and new buyers emerged as real players. There were 136 buyers this year, and approximately half of those buyers did their first deal in 2014. We believe that market conditions will continue to be healthy into the first half of 2015 and monthly deal counts should remain consistent with 2014 levels.
Securities offered through MarshBerry Capital Inc., Member FINRA and SIPC, and an affiliate of Marsh, Berry & Company Inc. 28601 Chagrin Blvd., Suite 400, Woodmere, Ohio 44122 (440 354-3230). Except where otherwise indicated, the information provided is based on matters as they exist as of the date of preparation. Past performance is not necessarily indicative of future results.
Merger and Acquisition Activity
October to December 2014
Announced Date | Buyer | Seller |
---|---|---|
11/30/14 | Acrisure LLC | MBS Insurance Services Inc. |
11/30/14 | Acrisure LLC | RSI Insurance Brokers Inc. |
12/31/14 | Alliant Insurance Services | American Benefits Consulting |
12/31/14 | Alliant Insurance Services | The Camps Group |
12/18/14 | Arthur J. Gallagher & Co. | Affinity Marketing Group |
10/13/14 | Arthur J. Gallagher & Co. | Bennett & Shade Co. |
11/06/14 | Arthur J. Gallagher & Co. | Discovery Benefit Solutions Inc. |
11/11/14 | Arthur J. Gallagher & Co. | Forker Co. |
12/17/14 | Arthur J. Gallagher & Co. | Independent Benefit Services Inc. |
10/31/14 | Arthur J. Gallagher & Co. | Insurance Associates Inc. |
11/19/14 | Arthur J. Gallagher & Co. | Miller-Harrison Insurance Services |
12/15/14 | Arthur J. Gallagher & Co. | O’gorman & Young Inc. |
11/10/14 | Arthur J. Gallagher & Co. | SGB-NIA Insurance Brokers |
12/30/14 | AssuredPartners Inc. | A.J. Lupas Insurance Agency Inc. |
12/29/14 | AssuredPartners Inc. | American Westbrook Insurance Services LLC |
12/24/14 | AssuredPartners Inc. | BRG Insurance & Bonds |
10/15/14 | AssuredPartners Inc. | Casualty Assurance of Chaska LLC |
12/08/14 | AssuredPartners Inc. | First Palmetto Insurance Agency LLC |
10/13/14 | AssuredPartners Inc. | Hukill Hazlett Harrington Agency Inc. |
11/04/14 | AssuredPartners Inc. | Premiere Coastal Insurance Group |
12/23/14 | AssuredPartners Inc. | Sheehan Insurance Service Inc. |
10/23/14 | AssuredPartners Inc. | Turner & Hamrick LLC |
12/29/14 | Brown & Brown Inc. | Global Benefit Strategies |
11/01/14 | CBIZ Inc. | Weekes & Callaway Inc. |
10/02/14 | Confie Seguros Insurance Services | AA Insurance Services |
11/03/14 | Confie Seguros Insurance Services | Action Auto Insurance Agency Inc. |
10/08/14 | Confie Seguros Insurance Services | Carallo Insurance Group Inc. |
11/03/14 | Confie Seguros Insurance Services | Fast Quote Insurance Services Inc. |
11/03/14 | Confie Seguros Insurance Services | Insurance Market Agency Inc. |
10/01/14 | Confie Seguros Insurance Services | Insurance Now LLC |
10/02/14 | Confie Seguros Insurance Services | Parietti & McGuire Insurance |
10/08/14 | Confie Seguros Insurance Services | Retail division of PayneWest Insurance |
11/24/14 | Edgewood Partners Insurance Center | Greyling Insurance Brokerage and Risk Consulting Inc. |
11/05/14 | Edgewood Partners Insurance Center | Lesron Insurance Agency Inc. |
11/05/14 | Frenkel & Company Inc. | Moyer Group Inc. |
10/01/14 | Heffernan Insurance Brokers | Pilot Benefits Group LLC |
11/01/14 | Hilb Group LLC | Lake Norman Benefits Inc. |
10/14/14 | Horton Group | Boyle Flagg & Seaman Inc. |
12/31/14 | Hub International Limited | Fidelity Associates Insurance & Financial Services Inc. |
10/01/14 | Hub International Limited | FieldEddy |
11/05/14 | Hub International Limited | Fotek Insurance Agency Incorporated |
12/01/14 | Hub International Limited | John O. Bronson Co. |
10/01/14 | Hub International Limited | Kuykendall Gardner LLC |
10/28/14 | Hub International Limited | Laurus Strategies |
10/02/14 | Hub International Limited | Marrs Maddocks & Associates Insurance Services Inc. |
12/31/14 | Hub International Limited | Smith Watson Parker Insurance |
11/10/14 | Integro Ltd. | Dominium Benefits LLC |
12/18/14 | Integro Ltd. | Ventura Insurance Brokerage Inc. |
12/11/14 | Kohlberg Kravis Roberts & Co. L.P. | Camps Group LLC |
12/31/14 | Marsh & McLennan Cos. Inc. | Benefit Planning Group Inc. |
11/07/14 | Marsh & McLennan Cos. Inc. | NuWest Insurance Services Inc. |
11/06/14 | National Financial Partners Corp. | EBS Foran Insurance and Advisory Services Inc. |
10/02/14 | NSM Insurance Group Inc. | Specialty Aviation Underwriters LLC |
12/04/14 | Partners Advantage Insurance Services LLC | Independent Life Brokerage Corp. |
12/02/14 | Regions Financial Corp. | Teaberry Health and Welfare Benefits Practice |
10/21/14 | Risk Strategies Co. LLC | Benefit Development Group |
10/08/14 | Risk Strategies Co. LLC | Crow Friedman Group |
10/31/14 | Risk Strategies Co. LLC | Greystone Benefit Services |
11/04/14 | Ryan Specialty Group LLC | Tennessee Underwriters Inc. |
12/01/14 | Scottish American Capital | Southern States General Agency Inc. |
12/04/14 | Starkweather & Shepley Insurance Brokerage Inc. | Imperial Insurance of Naples |
10/01/14 | Tompkins Financial Corp. | Employee benefits book of business from Aigen Financial Group LLC |
12/08/14 | USI Holdings Corp. | Certain assets of Askin Weber & Reed Inc |
12/02/14 | USI Holdings Corp. | Saint Louis Missouri operation of Holmes Murphy |
11/03/14 | USI Holdings Corp. | Seven retail insurance brokerage locations from Willis Group Holdings |
10/01/14 | USI Holdings Corp. | Wallace Insurance Group Inc. |
12/08/14 | Woodruff-Sawyer & Co. | Risk Solution Partners |
12/29/14 | World Insurance Associates LLC | Adlen-O’Brien Insurance Agency Inc. |
10/01/14 | First Commonwealth Financial Corp. | Thompson/McLay Insurance Associates |
12/16/14 | Lawley Insurance | DFM Insurance Inc. |
10/01/14 | Lawley Insurance | S. Turtletaub & Sons Inc. |
10/08/14 | Fairfax Financial Holdings Limited | International Specialty Inc. |
10/13/14 | CheckPoint HR Inc. | Quantum Benefits Inc. |
10/01/14 | Gryphon Investors | Orchid Underwriters Agency Inc. |
10/03/14 | Jardine Lloyd Thompson Group Plc | Specialty Energy Business from Alliant Insurance Services |
11/04/14 | UNICO Group Inc. | Midlands Financial Benefits Inc. |
11/05/14 | Paradigm Insurance Group LLC | Davis American Limited |
11/12/14 | C&R Insurance Services Inc. | Garden State Professional Insurance Agency/FLAG Insurance Services |
11/13/14 | Independent Insurance Agents of Texas | LevelFirst LLC |
11/18/14 | FBinsure LLC | Gramlich Insurance Agency Inc. |
11/21/14 | North Risk Partners LLC | Thune Insurance Network Inc. |
10/09/14 | Aquiline Holdings LLC | Worley Catastrophe Response LLC |
12/01/14 | Donald Gaddis Co. Inc. | Kelly and Elliott Ltd. |
12/01/14 | Victor O. Schinnerer & Co. | SeaFire Insurance Services LLC |
12/04/14 | Nodak Mutual Insurance Com. | Tri-State Ltd. |
12/12/14 | Minor Insurance Group LLC | Assets of Cooper Insurance Agency Inc. |
12/12/14 | Oswego Valley Insurance Agencies LLC | Bartlett Insurance Agency |
12/30/14 | BroadStreet Partners Inc. | Interwest Insurance Services Inc. |
12/16/14 | James F Hurley Insurance Agency Corp. | Meeker Sharkey Associates LLC |
12/31/14 | Volk and Bell Benefits LLC | David A. Marshall & Associates Inc. |
12/31/14 | DSP Insurance Services | Willis of Illinois’ Schaumburg Office |
Sources: SNL Financial, Insurance Journal, other publicly available sources and MarshBerry proprietary databases
Disclosure: All deal count metrics are inclusive of completed deals with U.S. targets only.
Topics Employee Benefits
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