Amwins Purchases Wholesale Business from BRP Group, Inc.
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Insights
The acquisition of Connected Risk Solutions by Amwins represents a strategic move to consolidate their position within the specialty insurance market, with a particular emphasis on healthcare and cyber insurance. This acquisition aligns with the current industry trend where larger firms are increasingly absorbing niche players to broaden their service portfolio and deepen domain expertise.
From a market perspective, the deal may signal Amwins' intent to capture a more significant market share and offer a more comprehensive suite of products. Additionally, the integration of Connected Risk Solutions' workforce, primarily based in key metropolitan areas like Atlanta and Chicago, could enhance Amwins' regional presence and client servicing capabilities.
BRP Group's divestiture of Connected Risk Solutions to Amwins is indicative of a strategic refocus on its core retail and MGA insurance businesses. This move may be seen by investors as a positive step towards operational efficiency and capital allocation to areas with the highest growth potential. For Amwins, the transaction is likely to impact financials by contributing to revenue diversification and potentially improving economies of scale.
It is also important to consider the transaction's timing and the potential impact on both companies' market valuations. The deal could be received favorably if it is perceived to enhance shareholder value through improved competitive positioning and growth prospects.
The specialty areas of healthcare and cyber insurance are of particular interest due to their high growth rates and the increasing risks associated with technological advancements and regulatory changes. Amwins' acquisition of Connected Risk Solutions could be seen as a proactive measure to address these evolving risks and capitalize on market demand.
The success of this acquisition will hinge on the effective integration of the new team and the seamless transition of client relationships. It is critical that Amwins maintains the high service levels and expertise that Connected Risk Solutions' clients have come to expect. This will likely involve investments in training and systems integration, which are essential components for realising the anticipated synergies from the deal.
Connected Risk Solutions to join Amwins' Brokerage Division
"We are pleased that the Connected Risk Solutions team is joining the Amwins' Brokerage team so that we can collectively leverage our expertise, particularly in the specialty areas of healthcare and cyber," said Jeff McNatt, President of Amwins Brokerage. "We loved working with a valued client, BRP, on this transaction and look forward to expanding our relationship with them as we both grow in our focus areas."
"BRP has had a preferred and trusted wholesale trading relationship with Amwins for many years and we believe Amwins will be a fantastic home for all of our Connected Risk Solutions clients and colleagues," said Trevor Baldwin, Chief Executive Officer of BRP.
"The sale of Connected Risk Solutions to Amwins is a continuation of BRP's efforts to focus on our core retail and MGA insurance businesses and streamline our operations. We appreciate all that our Connected Risk Solutions colleagues have done for our clients and how they have grown the business. We think this is a great next step for both BRP, Amwins and those colleagues who will continue to share their expertise and create opportunities for clients."
Connected Risk Solutions was formed in January 2020 via BRP Group's acquisition of Highland Risk Services, LLC and subsequent combination with AB Risk Specialist, LLC and KB Risk Solutions, LLC.
With this deal, Amwins will gain approximately 40 Connected Risk Solutions colleagues, primarily located in
With the largest specialty insurance distribution platform in the industry, Amwins Brokerage serves retailers by constantly collaborating to share knowledge and solutions across teams and divisions.
The transaction is subject to customary closing conditions and is expected to close on March 1, 2024.
About Amwins
Amwins is the largest independent wholesale distributor of specialty insurance products in the
About BRP Group, Inc.:
BRP Group, Inc. (NASDAQ: BRP) is an independent insurance distribution firm delivering tailored insurance and risk management insights and solutions that give clients the peace of mind to pursue their purpose, passion and dreams. The firm is innovating the industry by taking a holistic and tailored approach to risk management, insurance, and employee benefits, and support for clients, colleagues, insurance company partners and communities through the deployment of vanguard resources and capital to drive growth.
BRP Group, Inc. represents more than two million clients across
AMWINS PRESS
Lisa Kuszmar, Senior Vice President, Marketing
Amwins
704.749.2780 | lisa.kuszmar@amwins.com
BRP PRESS
Anna Rozenich, Senior Director, Enterprise Communications
Baldwin Risk Partners
630.561.5907 | anna.rozenich@baldwinriskpartners.com
BRP INVESTOR RELATIONS
Bonnie Bishop, Executive Director, Investor Relations
Baldwin Risk Partners
813.259.8032 | IR@baldwinriskpartners.com
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SOURCE Amwins
FAQ
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