In Partnership with
Eager buyers snap up insurance companies in a buoyant M&A market
A hardened insurance market has not stopped the insurance acquisitions train
Trevor Baldwin
Baldwin Risk Partners Group
Industry experts
Brian McNeely
Reagan Consulting
Joe Tatum
Relation Insurance
Trevor Baldwin
Baldwin Risk Partners
Trevor is the chief executive officer of Baldwin Risk Partners. Trevor joined the Firm in 2009 as a commercial risk advisor working primarily with health care and private equity clients. Over time he led the firm’s Commercial Risk Management Group as managing director, followed by being BRP’s president & CEO. Trevor has a background in investing in and working with companies to shape their goals and success. Trevor graduated from Florida State University with a BA in Risk Management & Insurance.
Baldwin Risk Partners Group
Trevor Baldwin
Brian McNeely joined Reagan Consulting in 2007 and is an executive vice president of and partner in the firm. Brian primarily works with clients on mergers and acquisitions, agency valuations, and strategic consulting projects. In addition, Brian serves as the CFO and COO of the firm.
Prior to joining Reagan, Brian spent approximately five years at The Home Depot in roles of increasing responsibility. Most recently, Brian focused on mergers and acquisitions, participating in due diligence exercises, performing financial and strategic analyses, and leading acquisition integrations. Prior to The Home Depot, Brian was an auditor with Arthur Andersen LLP.
Brian is a Certified Valuation Analyst (CVA) and obtained his undergraduate degree and Master of Accountancy degree from Auburn University. Brian currently maintains the Series 63 and 79 FINRA Registrations through Reagan Securities, the affiliated FINRA-registered broker/dealer of Reagan Consulting.
Reagan Consulting
Brian McNeely
Joe represents the core of Relation’s drive to upend the industry with a team of passionate experts who provide collaborative, proactive, custom service. He oversees all strategic and tactical operational functions at Relation and is responsible for company operations. His focus on sales and client management stems from his desire to honor clients’ stories and needs based on extensive insurance-industry experience. Joe has a keen eye for potential partner mergers and manages Relation’s need to grow, but only as quickly as suits our clients and his team.
Joe’s legacy in the insurance industry includes fostering collaborative teams as managing partner with Willis Northern California, chief financial officer with Marsh Midwest Region, and chief financial officer with Sedgwick Insurance Services.
Joe earned a Bachelor of Science degree in Finance from the University of Southern Mississippi and is a Certified Public Accountant.
Relation Insurance
Joe Tatum
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Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Baldwin Risk Partners
Trevor Baldwin
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Vault Plus Mortgage and Finance Consultancy
David Merison
“It’s [the insurance industry] quite frankly the best industry on Earth. We think about it as the original subscription business”
Trevor Baldwin,
BRP Group
COVID WAS predicted by many in business circles to be a game-changer. The potential for the pandemic to slow down some businesses to a snail’s pace, along with the distinct possibility of it putting others completely out of business, loomed large. However, the insurance sector largely managed to weather the COVID storm – with some even thriving by ramping up their M&A activity.
Over the last several years there has been a flurry of activity in the insurance space on both the buying and selling sides, with insurance brokerages the focal point of renewed investor interest.
Offering insight into what is driving such an upswing in the M&A market, the latest edition of Insurance Business TV’s Executive Roundtable Series brought together some of the top minds in the sector.
All three panel guests agreed that the interest from private equity players in merging and or acquiring different insurance brokerages is expected to continue. With private equity investors viewing the insurance playing field favorably, there is a general willingness to flex their acquisition muscles well into 2022.
“The second half of 2021 was exceptionally busy, with the fear of capital gains taxes looming out there”
Joe Tatum,
Relation Insurance
“We have historically seen a choppy market during a midterm election year. We’re currently in one of those. So we could see some market volatility that would impact some of the acquirers in the market who have significant amounts of debt”
Brian McNeely,
Reagan Consulting
“As you reflect back on the resiliency [of the insurance sector] and the performance of businesses in the sector throughout COVID and through a myriad of challenges, it is the increased appetite and quantum capital that is seeking to get into our space,” Baldwin explained.
All the panel guests agreed that the number of buyers continues to rise to impressive levels.
“By the latest count, there are probably over 40 active acquires in the industry. There is no shortage of optionality when a seller is coming to the table and looking for an organization that’s going to fit their needs, align with their culture, and be able to deliver from a value perspective,” Baldwin stated.
“The second half of 2021 was exceptionally busy with the fear of capital gains taxes looming out there.”
Joe Tatum,
CEO with Relation Insurance
“I think Brian has got a good point in how it should be measured. Not just the number of deals, but the size of the deals and the size of the consolidation at the end of the year, because I think there will be a lot more activity in the smaller space,” Tatum said.
The panelists pointed out that buyers will be considering the “organic growth” of a company and its cultural fit when looking to buy a particular firm.
“The cultural fit is the number one factor. I think that organic growth is absolutely a barometer of how healthy the organization is and whether or not it has that true sales culture,” Tatum said.
To sell or not to sell
When asked what sellers may be looking for before handing over a firm’s keys, Baldwin said that “there is no shortage of potential buyers.”
2015
2016
2017
2018
2019
12%
10%
8%
6%
4%
2%
0%
1.7%
3.8%
7.0
All ADIs
Major Banks
Mutual Banks
Increased M&A activity predicted for 2022
7.5%
6.7%
11.3%
5.3%
4.9%
3.8%
3.0%
3.6%
3.6%
8%
7.3%
“The second half of 2021 was exceptionally busy, with the fear of capital gains taxes looming out there,” Joe Tatum, CEO with Relation Insurance, commented.
Buying prospects into 2022
“We think it [M & A activity} will continue. When you look at the number of private equity players in the space and the acquisition edicts that they have from their investors, we think that this will continue to drive activity,” Brian McNeely, executive vice president with Reagan Consulting, added.
Investors were not oblivious to the resilience of the insurance industry during the darkest days of the pandemic, which McNeely identified as a key reason why they have set their sights on the insurance space.
“It’s really about [having the] cultural fit in alignment,” he stated.
“When you close a transaction, it’s going to be a great day, you are going to get a big check. But then you’ve got to show up to work the next day, the next month, and the next year, and you’ve got to work alongside the team you joined.”
McNeely drew attention to the questions that sellers need to ask themselves when they consider selling their businesses. These questions include “What kind of leadership opportunities exist?” “How can I go to work with this particular firm?” and “How can they make me more successful?”
Source: 2022 insurance M&A outlook: Explore the trends reshaping M&A in the insurance industry
Published by Deloitte – Global Outlook Survey results
CUA
Billion
12%
$17.44
Billion
$10.83
1%
Billion
$10.09
6%
Newcastle Permanent
Heritage Bank
Billion
$8.81
5%
People's Choice
Billion
$8.04
Teachers Mutual
14%
“Even when things are bad, in the middle of the pandemic, agents and brokers thrived in that time, truly showing that insurance is something that is a need for folks,” McNeely pointed out.
“Folks are going to have to buy insurance from brokers, regardless of the financial conditions, even when they get bad. That is the last thing they would give up,” he elaborated.
Simple market principles have been at play, the panel guests highlighted, including a continued low borrowing rate climate and plenty of capital, as well as the sheer supply and demand in the insurance space.
“It’s [the insurance industry] quite frankly the best industry on earth. We think about it as the original subscription business,” Trevor Baldwin, chief executive officer with BRP Group, echoed.
What will change in 2022, according to McNeely, is what the acquisitions will look like. In particular, the size of the companies being acquired by private capital investors will be different.
“I think we will see some of the middle size, I’ll call them private equity-backed firms, either consolidate or be acquired by larger acquirers,” McNeely highlighted.
“I also think the revenue of those acquisition candidates is much smaller. Firms move more downstream to the smaller firms, and those firms will gain more attention than they have in the past,” he added.
Tatum agreed with McNeely on both the size and type of deals that will be seen in the near future.
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executive insights
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These questions, the panel guests agreed, speak to the necessity for a seller to weigh the option to sell based on the right cultural match.
Of equal importance, they pointed out, is the level of integration that the seller may require when working with a new team. The integration process should be viewed in the same light by both the buyer and the seller for a mutually successful merger or acquisition.
Acquiring new directions
As we embark on the second fiscal quarter of 2022, thoughts are now turning to what lies ahead in the M&A market for insurance companies of varying sizes.
BRP Group, Inc. (NASDAQ: BRP) is an independent insurance distribution firm delivering tailored insurance and risk management insights and solutions that give our clients the peace of mind to pursue their purpose, passion, and dreams. We are innovating the industry by taking a holistic and tailored approach to risk management, insurance, and employee benefits, and support our clients, colleagues, insurance company partners, and communities through the deployment of vanguard resources and capital to drive our growth. BRP Group represents over 700,000 clients across the United States and internationally. For more information, please visit www.baldwinriskpartners.com
Find out more
Reagan Consulting is where America’s leading agents, brokers, and financial institutions turn for advice. For over 20 years, they have provided M&A advisory, valuation, and strategic consulting services to the leaders in insurance distribution, including more than 60 of the top 100 agents and brokers and more than 150 banks and savings institutions. One hundred percent of their time is spent in the insurance distribution industry, establishing the firm as the foremost authority on the business practices of the country’s leading independent insurance agencies and brokers and giving their consultants the frontline knowledge to guide clients ably.
Find out more
Relation Insurance Services is a national brokerage that offers superior risk-management and benefits-consulting services through its family of brands across the United States. Relation is one of the largest full-service P&C and employee benefits brokerage firms and has approximately 1,200 employees across more than 150 locations nationwide. Relation is a privately held corporation backed by Aquiline Capital Partners, a private equity firm based in New York and London investing in businesses globally across financial services and technology.
Find out more
“At a macro level, the fundamental forces that have driven consolidation across the insurance distribution landscape remain as prevalent today as ever”
Trevor Baldwin,
Baldwin Risk Partners
“More specialized, consultative brokers are going to have more new business opportunities than the average firm that’s doing business like they were 30 years ago”
Gerard Vecchio,
MarshBerry
“Sellers no longer view a robust technology offering as a nice-tohave item; if a buyer isn’t bringing technology enhancements as a value proposition to the table, they are going to lose out on more transactions than they win”
Timothy J. Hall,
Relation Insurance
“Traditionally, financial services have not been the first investment area for most private equity funds, but today, insurance is an attractive industry because it has been stress-tested”
Phil Trem,
MarshBerry
In Partnership with
M&A
Insights 2021
Insurance Business America uncovers the answers to brokers’ biggest questions about mergers and
acquisitions, with expert insight from MarshBerry, Baldwin Risk Partners and Relation Insurance
Read on
Trevor Baldwin
Baldwin Risk Partners
Joe Tatum
Relation Insurance
Brian McNeely
Reagan Consulting
Trevor Baldwin
Baldwin Risk Partners Group
Industry experts
2015
2016
2017
2018
2019
12%
10%
8%
6%
4%
2%
0%
All ADIs
Major Banks
Mutual Banks
8%
7.3%
7.5%
3.6%
4.9%
11.3%
5.3%
3.8%
3.6%
3.0%
6.7%
3.8%
1.7%
7.0
Loan Portfolio Growth (2015-2019)
TOP 10 MUTUAL BANKS BY TOTAL ASSETS, 2019
CUA
Billion
$17.44
12%
Newcastle Permanent
Billion
$10.83
1%
Heritage Bank
Billion
$10.09
6%
People's Choice
Billion
$8.81
5%
Teachers Mutual
Billion
$8.04
14%
BRP Group, Inc. (NASDAQ: BRP) is an independent insurance distribution firm delivering tailored insurance and risk management insights and solutions that give our clients the peace of mind to pursue their purpose, passion, and dreams. We are innovating the industry by taking a holistic and tailored approach to risk management, insurance, and employee benefits, and support our clients, colleagues, insurance company partners, and communities through the deployment of vanguard resources and capital to drive our growth. BRP Group represents over 700,000 clients across the United States and internationally. For more information, please visit www.baldwinriskpartners.com
Find out more
Reagan Consulting is where America’s leading agents, brokers, and financial institutions turn for advice. For over 20 years, they have provided M&A advisory, valuation, and strategic consulting services to the leaders in insurance distribution, including more than 60 of the top 100 agents and brokers and more than 150 banks and savings institutions. One hundred percent of their time is spent in the insurance distribution industry, establishing the firm as the foremost authority on the business practices of the country’s leading independent insurance agencies and brokers and giving their consultants the frontline knowledge to guide clients ably.
Find out more
Relation Insurance Services is a national brokerage that offers superior risk-management and benefits-consulting services through its family of brands across the United States. Relation is one of the largest full-service P&C and employee benefits brokerage firms and has approximately 1,200 employees across more than 150 locations nationwide. Relation is a privately held corporation backed by Aquiline Capital Partners, a private equity firm based in New York and London investing in businesses globally across financial services and technology.
Find out more
executive insights
Top
Insight Leaders
Overview
General Stats
Insights
Trevor is the chief executive officer of Baldwin Risk Partners. Trevor joined the Firm in 2009 as a commercial risk advisor working primarily with health care and private equity clients. Over time he led the firm’s Commercial Risk Management Group as managing director, followed by being BRP’s president & CEO. Trevor has a background in investing in and working with companies to shape their goals and success. Trevor graduated from Florida State University with a BA in Risk Management & Insurance.
Baldwin Risk Partners Group
Trevor Baldwin
Brian McNeely joined Reagan Consulting in 2007 and is an executive vice president of and partner in the firm. Brian primarily works with clients on mergers and acquisitions, agency valuations, and strategic consulting projects. In addition, Brian serves as the CFO and COO of the firm.
Prior to joining Reagan, Brian spent approximately five years at The Home Depot in roles of increasing responsibility. Most recently, Brian focused on mergers and acquisitions, participating in due diligence exercises, performing financial and strategic analyses, and leading acquisition integrations. Prior to The Home Depot, Brian was an auditor with Arthur Andersen LLP.
Brian is a Certified Valuation Analyst (CVA) and obtained his undergraduate degree and Master of Accountancy degree from Auburn University. Brian currently maintains the Series 63 and 79 FINRA Registrations through Reagan Securities, the affiliated FINRA-registered broker/dealer of Reagan Consulting.
Reagan Consulting
Brian McNeely
Joe represents the core of Relation’s drive to upend the industry with a team of passionate experts who provide collaborative, proactive, custom service. He oversees all strategic and tactical operational functions at Relation and is responsible for company operations. His focus on sales and client management stems from his desire to honor clients’ stories and needs based on extensive insurance-industry experience. Joe has a keen eye for potential partner mergers and manages Relation’s need to grow, but only as quickly as suits our clients and his team.
Joe’s legacy in the insurance industry includes fostering collaborative teams as managing partner with Willis Northern California, chief financial officer with Marsh Midwest Region, and chief financial officer with Sedgwick Insurance Services.
Joe earned a Bachelor of Science degree in Finance from the University of Southern Mississippi and is a Certified Public Accountant.
Relation Insurance
Joe Tatum
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Baldwin Risk Partner
Trevor Baldwin
“At a macro level, the fundamental forces that have driven consolidation across the insurance distribution landscape remain as prevalent today as ever”
Trevor Baldwin,
Baldwin Risk Partners
“More specialized, consultative brokers are going to have more new business opportunities than the average firm that’s doing business like they were 30 years ago”
Gerard Vecchio,
MarshBerry
“Sellers no longer view a robust technology offering as a nice-tohave item; if a buyer isn’t bringing technology enhancements as a value proposition to the table, they are going to lose out on more transactions than they win”
Timothy J. Hall,
Relation Insurance
“Traditionally, financial services have not been the first investment area for most private equity funds, but today, insurance is an attractive industry because it has been stress-tested”
Phil Trem,
MarshBerry
In Partnership with
M&A
Insights 2021
Insurance Business America uncovers the answers to brokers’ biggest questions about mergers and
acquisitions, with expert insight from MarshBerry, Baldwin Risk Partners and Relation Insurance
Read on
Trevor Baldwin
Baldwin Risk Partners
Joe Tatum
Relation Insurance
Brian McNeely
Reagan Consulting
Trevor Baldwin
BRP Group
Industry experts
2015
2016
2017
2018
2019
12%
10%
8%
6%
4%
2%
0%
All ADIs
Major Banks
Mutual Banks
8%
7.3%
7.5%
3.6%
4.9%
11.3%
5.3%
3.8%
3.6%
3.0%
6.7%
3.8%
1.7%
7.0
Loan Portfolio Growth (2015-2019)
TOP 10 MUTUAL BANKS BY TOTAL ASSETS, 2019
CUA
Billion
$17.44
12%
Newcastle Permanent
Billion
$10.83
1%
Heritage Bank
Billion
$10.09
6%
People's Choice
Billion
$8.81
5%
Teachers Mutual
Billion
$8.04
14%
BRP is an award-winning entrepreneur led and inspired insurance distribution holding company delivering solutions that give our clients the peace of mind to pursue their purpose, passion and dreams. Our family of firms’ best-in-class resources and diverse portfolio of services are innovating the industry by taking a holistic and tailored approach to insurance, risk management and employee benefits.
Find out more
Find out more
Find out more
executive insights
Top
Insight Leaders
Overview
General Stats
Insights
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Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Baldwin Risk Partners
Trevor Baldwin
Relation Insurance
Joe Tatum
Reagan Consulting
Brian McNeely
BRP Group
Trevor Baldwin
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contact us
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RISK MANAGEMENT
News
Copyright © 2022 Key Media
People
Terms & conditions
Privacy policy
Conditions of use
About us
Contact us
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Asia
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For the panel experts, predictions of further consolidation of some of the key insurance players were unanimous.
They all agreed on the strength of the M&A market moving through the new year, despite some anticipated market volatility ahead.
“We have historically seen a choppy market during a midterm election year. We’re currently in one of those. So we could see some market volatility that would impact some of the acquirers in the market who have significant amounts of debt,” McNeely summarized.
the total deal volume across underwriters and brokers for 2021
40%
deals in 2021
869
deals in 2020
620
up from
aggregate deal value year over year
165%
M&A activity was strong in the insurance sector for 2021
Hover to see more
Source: 2022 insurance M&A outlook: Explore the trends reshaping M&A in the insurance industry
Published by Deloitte – Global Outlook Survey results
one-third of Deloitte’s Global Outlook Survey respondents anticipate heightened takeover activity as highly likely
on the L & A side, 44% of respondents felt that takeover activity is likely
on the non-life side, 32% of survey respondents anticipated takeover activity