Brown & Brown’s SHOCKING $9.8B Power Grab: Snags Accession Risk Management in Explosive Deal!

The insurance broker firm Brown & Brown announced that it will acquire Accession Risk Management for about $9.83 billion with a mix of cash and stock.

The announcement made on Tuesday is a clear indicator of the consolidation activity taking place within the still fragmented insurance brokerage market as players continue to try to achieve scale through consolidation, as noted by Reuters.

The magnitude of this deal highlights a growing willingness among firms to pay market premiums for expanding market share or enhancing their competitive position, as noted by Reuters. Some recent similar deals were Aon’s $13 billion purchase of NFP last year and Marsh McLennan’s $7.75 billion acquisition of McGriff Insurance Services.

Accession Risk Management is based in Boston and is the parent company of Risk Strategies, which was founded in 1997 by Mike Christian. The company also owns insurance wholesaler One80 Intermediaries. Both these companies act as brokers to insurers and a wide range of clients including commercial and nonprofit organizations, as per Reuters.

The acquisition is expected to be funded with a combination of $4 billion in equity and $4 billion in bonds of various maturities. After the announcement, Brown & Brown’s stocks.