FTI Consulting Acquires Madison Consulting Group
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Insights
The acquisition of Madison Consulting Group by FTI Consulting represents a strategic expansion of FTI's actuarial and compliance services within its Global Insurance Services practice. This move is indicative of FTI's commitment to strengthening its forensic and litigation consulting offerings, particularly in the property and casualty insurance sector, which is subject to frequent regulatory changes and disruptive factors such as climate events and technological advancements.
From a financial perspective, the addition of 25 billable professionals, including a Senior Managing Director, can be expected to contribute to FTI's revenue growth. This acquisition could potentially lead to improved economies of scale and cross-selling opportunities within FTI's existing client base. However, the financial terms of the transaction were not disclosed, making it challenging to assess the immediate financial impact or the deal's valuation metrics compared to industry norms.
It is also worth noting the potential for operational synergies, as the acquired firm's expertise in actuarial consulting, regulatory compliance and expert witness services can enhance FTI's current offerings. These synergies may lead to cost savings and efficiency improvements in the long run, although the short-term financial impact may include integration costs.
The insurance industry is undergoing significant transformations due to emerging risks and regulatory changes. FTI Consulting's acquisition of Madison Consulting Group is a response to these market dynamics, aiming to bolster its competitive position in the property and casualty insurance segment. The move could enhance FTI's reputation as a provider of comprehensive services, which is crucial in a market where clients seek one-stop solutions for complex regulatory and risk management challenges.
Moreover, the expertise of the Madison Consulting Group in emerging areas such as cyber threats and ESG compliance is particularly relevant. As insurers increasingly prioritize these issues, FTI's expanded capabilities may attract new clients and retain existing ones, thereby potentially increasing market share.
The presence of high-profile professionals like Dr. Mark Crawshaw joining FTI as a Senior Managing Director suggests a focus on leadership and expertise, which could resonate positively with stakeholders and clients who value industry experience and thought leadership in their advisory partners.
FTI Consulting's strategic decision to acquire Madison Consulting Group underscores the importance of specialized actuarial services in the property and casualty insurance space. The acquired firm's track record in loss reserve analysis, ratemaking and regulatory assistance is critical for insurers who must navigate an increasingly complex risk landscape. The integration of Madison's team could enhance FTI's ability to provide nuanced, data-driven insights for loss and loss expense reserve analysis, crucial for insurers' financial health and regulatory compliance.
The mention of severe weather events, cyber threats and ESG compliance as disruptive factors highlights the evolving nature of risk and the need for sophisticated actuarial analysis. The acquisition may allow FTI to offer more robust predictive modeling and risk assessment capabilities, which are essential for insurers to manage emerging risks effectively and maintain competitiveness.
Furthermore, the addition of expert testimony services is significant, as legal proceedings and rate hearings become more prevalent in the industry. This service is not only valuable for FTI's clients but also positions the company as a key player in legal and regulatory matters within the insurance sector.
Enhances Property and Casualty Actuarial and Compliance Offerings within Insurance Practice
Adds 25 Billable Professionals, Including One Senior Managing Director
WASHINGTON, March 04, 2024 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) today announced that it has acquired Madison Consulting Group, an actuarial consulting firm with 25 billable professionals and offices in Madison, Ga., and Newtown Square, Pa. The addition of Madison Consulting Group expands the firm’s property and casualty actuarial and compliance offerings within the Global Insurance Services practice in the Forensic and Litigation Consulting segment. Terms of the transaction were not disclosed.
As part of the transaction, Madison Consulting Group President Mark Crawshaw joins FTI Consulting as a Senior Managing Director, and Tina Knight, Leslie Marlo and John Gleba join as Managing Directors. Dr. Crawshaw and the team enhance FTI Consulting’s property and casualty actuarial consulting capabilities and provide clients with insurance policy regulatory compliance services that will help insurance companies meet state and federal regulatory requirements. The team provides actuarial, data collection, compliance reporting and expert witness services to clients that include state and federal regulatory agencies, law firms, insurance companies, managing general agents and self-insurance programs.
“Disruptions such as regulatory changes, severe weather events, cyber threats, artificial intelligence, self-driving vehicles and ESG compliance, among numerous others, have changed how entities view and mitigate risk,” said Wendy Shapss, Co-Leader of the Global Insurance Services practice at FTI Consulting. “We have a great relationship with Mark and his team, and we have a track record of working collaboratively to help our clients. The services they provide complement our existing actuarial capabilities and greatly add to our ability to serve property and casualty insurers.”
Dr. Crawshaw began his actuarial career in 1984 and joined Madison Consulting Group in 1988. His experience includes loss and loss expense reserve analysis for personal and commercial lines; ratemaking and profitability studies for personal and commercial lines; expert testimony in rate hearings, reinsurance arbitrations, legislative matters and legal proceedings; and assistance to state insurance regulators in evaluating rate filings, the financial condition of insurance companies and other actuarial matters. Dr. Crawshaw is a Fellow of the Casualty Actuarial Society and a member of the American Academy of Actuaries.
“FTI Consulting’s platform gives our team an opportunity for growth and is a cultural fit for us,” Dr. Crawshaw said. “We are excited to bring the breadth of FTI Consulting’s offerings to our existing clients, and we look forward to partnering with our new colleagues to unlock new opportunities.”
FTI Consulting’s Global Insurance Services professionals combine their business and technical acumen to help insurers, reinsurers, captives, brokers, investors, regulators, corporations and their legal and business advisors address complex strategic and tactical issues. They manage a broad range of large domestic and international engagements such as high-profile, discreet investigations and disputes, complex restructurings and enterprise-wide transformations, and the application of methodologies and analytics to innovate, improve performance, reduce risk and achieve compliance.
About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 7,900 employees located in 31 countries and territories, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The Company generated
About Madison Consulting Group
Madison Consulting Group, Inc. is an independent actuarial consulting firm with offices in Madison, Ga., and Newtown Square, Pa. The firm was founded in 1987 and incorporated in its current form in 1999. Madison Consulting Group provides actuarial, data collection, compliance reporting and expert witness services. Clients include state and federal regulatory agencies, law firms, insurance companies, managing general agents and self-insurance programs.
Safe Harbor Statement
This press release includes “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 that involve uncertainties and risks, including statements related to our expectations regarding the acquired entity and its services and professionals. There can be no assurance that they will perform as expected. Factors that could cause the Company expectations to differ include the Company’s ability to market the services they offer and perform, competitive and general economic conditions, the retention of professionals, staff and clients, and other risks described under the heading “Item 1A. Risk Factors” in the Company’s most recent Form 10-K and in the Company’s other filings with the Securities and Exchange Commission. We are under no duty to update any of the forward-looking statements to conform such statements to actual results or events and do not intend to do so.
FTI Consulting, Inc.
555 12th Street NW
Washington, DC 20004
+1.202.312.9100
Investor Contact:
Mollie Hawkes
+1.617.747.1791
mollie.hawkes@fticonsulting.com
Media Contact:
Matthew Bashalany
+1.617.897.1545
matthew.bashalany@fticonsulting.com
FAQ
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