Agent & Broker Merger & Acquisition Update...2020/09/10 · NFP 65 August 2020 People’s United...
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1 Agent & Broker Merger & Acquisition Update September 2020
Transcript of Agent & Broker Merger & Acquisition Update...2020/09/10 · NFP 65 August 2020 People’s United...
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Agent & Broker
Merger & Acquisition Update
September 2020
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2 April 2020
Table of ContentsAgent M&A Update
Observations Page 3
Summary Information Page 4
Most Active Buyers Page 8
Totals by Buyer / Seller Type Page 10
Significant Transactions Page 13
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Observations & Comments
OPTIS Partners View
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The slow down in deal activity in the 2nd quarter was noticeable (25% lower over the prior
year), but one would not think the world was wrestling with a pandemic based on both 3rd
quarter volume (no change year over year) and year-to-date 2020 (only 7% lower year over
year) total deals completed.
Many pundits erroneously anticipated a slow-down in M&A activity to have continued into the
3rd quarter and possibly beyond. It did not happen. M&A activity should continue unabated
due to the increasing supply of capital chasing a still very large inventory of sellers.
Activity in the 4th quarter will likely be accelerated as many sellers push to close before year-
end as a hedge against a possible increase in capital gains tax in 2021.
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Highlights of Q1:Q3 2020 M&A Activity
Summary Information
466 transactions in Q1:Q3 2020, down from 499 for the same period in 2019
170 transactions in Q3-2020 virtually the same as the 171 recorded in Q3-2019
616 transactions in past 12 months
Down from the peak of 671 for the period ended June 2019
Acrisure led all buyers with 69 transactions thru September 30, 2020, the same total they had
in the same periods in 2019 and 2018
Followed by Broadstreet Partners (40), Hub International (28), AssuredPartners (25),
World Insurance Associates (23) and PCF Insurance (22)
Private Equity-Backed / Hybrid (“PE/Hybrid”) responsible for 71% of all announced
transactions in the past 12 months and 69% during the most recent quarter
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Quarterly M&A Activity
Summary Information
0
20
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200
Q1 '08 Q3 Q1 '09 Q3 Q1 '10 Q3 Q1 '11 Q3 Q1 '12 Q3 Q1 '13 Q3 Q1 '14 Q3 Q1 '15 Q3 Q1 '16 Q3 Q1 '17 Q3 Q1 '18 Q3 Q1 '19 Q3 Q1 '20 Q3
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Quarterly M&A Activity
Summary Information
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20
40
60
80
100
120
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160
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2015 2016 2017 2018 2019 2020
Q1 Q2 Q3 Q4
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Summary Agency Acquisitions By Year
Summary Information
461
611643 649
483499
466
0
100
200
300
400
500
600
700
2016 2017 2018 2019 Q1-3 2018 Q1-3 2019 Q1-3 2020
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Active Acquirers With 15 or More Deals in 2020
Most Active Acquirers
Buyer by Type Ownership 2016 2017 2018 2019YTD Q3-
2020
Acrisure PE / Hybrid 63 92 101 98 69
Broadstreet Partners PE / Hybrid 27 32 34 34 40
Hub International PE / Hybrid 45 49 59 51 28
AssuredPartners PE / Hybrid 28 26 38 44 25
World Insurance Associates PE / Hybrid 4 5 9 18 23
PCF Insurance PE / Hybrid 0 1 4 6 22
OneDigital PE / Hybrid 8 13 27 17 15
All Other 286 393 371 381 243
Total Reported Transactions 461 611 643 649 465
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Acquirers With 20 or More Deals in Past 12 Months
Most Active Acquirers
Buyer by Type Ownership 2016 2017 2018 2019 TTM
Acrisure PE / Hybrid 63 92 101 98 96
Broadstreet Partners PE / Hybrid 27 32 34 34 48
Hub International PE / Hybrid 45 49 59 51 43
AssuredPartners PE / Hybrid 28 26 38 44 38
World Insurance Associates PE / Hybrid 4 5 9 18 27
Risk Strategies PE / Hybrid 9 11 10 22 22
PCF Insurance PE / Hybrid 0 1 4 6 22
The Hilb Group PE / Hybrid 11 14 12 25 21
All Other 274 381 376 351 298
Total Reported Transactions 461 611 643 649 615
(*) Company did not exist
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Rolling 12-Month Activity by Buyer Type (% Total)
Totals By Buyer / Seller Type
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1'09
Q3 Q1'10
Q3 Q1'11
Q3 Q1'12
Q3 Q1'13
Q3 Q1'14
Q3 Q1'15
Q3 Q1'16
Q3 Q1'17
Q3 Q1'18
Q3 Q1'19
Q3 Q1'20
Q3
Other Public Private PE/Hybrid
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Rolling 12-Month # Transaction by Buyer Type
Totals By Buyer / Seller Type
0
50
100
150
200
250
300
350
400
450
500
Q1'09
Q3 Q1'10
Q3 Q1'11
Q3 Q1'12
Q3 Q1'13
Q3 Q1'14
Q3 Q1'15
Q3 Q1'16
Q3 Q1'17
Q3 Q1'18
Q3 Q1'19
Q3 Q1'20
Q3
PE / Hybrid Private Public Other
Virtually all of the growth in the number of M&A
transactions has come from the expansion of the
PE/Hybrid buyers’ activity while the other groups
have remained relatively stable over the past 10+
years.
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Rolling 12-Month Activity by Seller Type (% Total)
Totals By Buyer / Seller Type
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1'09
Q3 Q1'10
Q3 Q1'11
Q3 Q1'12
Q3 Q1'13
Q3 Q1'14
Q3 Q1'15
Q3 Q1'16
Q3 Q1'17
Q3 Q1'18
Q3 Q1'19
Q3 Q1'20
Q3
P&C PC / EB EB All Other
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Significant 2019 Broker Transactions in 2020
Significant Transactions
Seller Buyer2019 Business
Insurance RankDate
LMC Insurance & Risk Management
(Des Moines, IA)AssuredPartners 58 February 2020
Assurance Agency
(Schaumburg, IL)Marsh McLennan Agency 35 April 2020
Associated Benefits & Risk Consulting
(Minnetonka, MN)USI Insurance Services 39 May 2020
Rose & Kiernan
(Albany, NY)NFP 65 August 2020
People’s United Insurance Agency
(Hartford, CT)AssuredPartners 85 September 2020
Willis Towers Watson PLC
(Announcement Only)Aon PLC 3
Expected to close
Q1/Q2 - 2021
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Private Equity-backed Ownership Changes in 2020
Significant Transactions
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Insurance Agency Lead Buyer / Investor Description Date
World Insurance Associates
(Tinton Falls, NJ)
Charlesbank Capital
PartnersMajority Investment March 2020
PCF Insurance
(Woodland Hills, CA)HGGC Sale by BHMS March 2020
Risk Strategies Kelso & Co. Kelso & Co. (1) March 2020
Sunstar Insurance Group
(Memphis, TN)BBH Capital Partners Majority recapitalization June 2020
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Private Equity-backed Ownership Changes in 2020(Continued)
Significant Transactions
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Insurance Agency Lead Buyer / Investor Description Date
JenCap Holdings and
EPIC Insurance Brokers
(will continue to operate as two separate
PE-backed organizations)
Carlyle Group and
Oak Hill Capital
Combined under
Galway HoldingsJune 2020
Alera Group
(Deerfield, IL)Carlyle Group $150M New Investment September 2020
OneDigital OnexMajority Equity
InvestmentOctober 2020
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Connect with us:
Tim Cunningham
Dan Menzer
Steve Germundson
312-235-0081
630-520-0490
612-718-0598
Website:
www.optisins.com
