In one of the largest insurance brokerage deals in recent years, Brown & Brown has announced it will acquire its industry competitor, Accession Risk Management, for a massive $9.83 billion. The acquisition marks a bold move in a sector known for frequent smaller-scale mergers but now witnessing a rise in high-value consolidations. The deal underlines Brown & Brown’s ambition to significantly strengthen its market position and expand its specialty capabilities across North America.
The insurance brokerage industry has long been fragmented, with many smaller firms operating regionally. While minor acquisitions remain common, this deal reflects a growing appetite among larger players to pursue transformative mergers. Such large-scale deals allow companies to scale quickly, tap into new client segments, and consolidate operations. This transaction follows other blockbuster takeovers like Aon’s $13 billion purchase of NFP and Marsh McLennan's $7.75 billion acquisition of McGriff Insurance. Another $13.45 billion deal by Arthur J. Gallagher to buy AssuredPartners is expected to be finalized later this year.
Despite ongoing economic headwinds and a broader slowdown in corporate dealmaking, the insurance sector appears more resilient. Companies like Brown & Brown are proceeding with acquisitions that align with their long-term strategic goals, even if broader financial conditions are uncertain. These transactions are seen as necessary to maintain growth, streamline offerings, and improve negotiating leverage with insurers.
To fund this nearly $10 billion purchase, Brown & Brown has announced plans to sell $4 billion worth of shares. This move temporarily shook investor confidence, leading to a 3% drop in the company's stock before market trading began. Still, the company appears confident in its ability to integrate Accession and generate long-term value for shareholders. The financial commitment signals a strong belief in the strategic advantages that the acquisition is expected to deliver.
Accession, headquartered in Boston, is best known as the parent company of Risk Strategies and One80 Intermediaries. Founded in 1997 by Mike Christian, Risk Strategies has grown into a formidable national player with a client base spanning commercial enterprises and nonprofit organizations. Accession posted pro forma revenue of $1.7 billion and placed $15.7 billion in insurance premiums in 2024. With over 5,000 professionals across the U.S. and Canada, its scale and specialization make it a valuable asset for Brown & Brown.
The deal, set to close in the third quarter of 2025, will lead to the creation of a new specialty distribution segment within Brown & Brown. This new division will merge the programs and wholesale brokerage arms of both companies. Major financial institutions, including BofA Securities, J.P. Morgan Securities, and the law firm Skadden, Arps, Slate, Meagher & Flom, advised Brown & Brown on the transaction. The merger is poised to reshape the competitive landscape of insurance brokering and may inspire further consolidation among other mid-to-large-sized players in the indus