Brown & Brown, Inc. (NYSE: BRO), a leading insurance brokerage firm, announced its agreement to acquire Accession Risk Management Group, Inc. (“Accession”) for a gross purchase price of $9.825 billion. This strategic acquisition, expected to close in the third quarter of 2025, marks a significant expansion for Brown & Brown in the specialty insurance brokerage segment. The transaction is set to unite the capabilities of Risk Strategies and One80 Intermediaries, subsidiaries of Accession, enhancing Brown & Brown’s Retail and newly formed Specialty Distribution segments.
Accession, established in 1997 and ranked as the ninth largest privately held insurance brokerage in the U.S., brings approximately \(1.7 billion in pro forma adjusted revenues for 2024 with over 5,000 insurance professionals across the U.S. and Canada. These figures reflect the breadth and specialization of Accession’s business, complementing Brown & Brown’s 2024 fiscal year revenue of approximately \)4.7 billion and net income of $993 million.
This acquisition is strategically compelling for Brown & Brown, enhancing customer and carrier relationships, expanding placement opportunities, and broadening niche solutions for clients with complex insurance needs. The combination of complementary business segments and shared cultures promises to accelerate profitable growth while reinforcing Brown & Brown’s entrepreneurial spirit and teammate ownership philosophy.
Financially, the deal is projected to be accretive to Brown & Brown’s 2024 adjusted diluted net income per share, reinforcing shareholder value. Brown & Brown’s preceding fiscal year saw an operating income of $1.467 billion, underpinning its robust earnings foundation to absorb and leverage the acquisition.
In recent years, Brown & Brown has pursued aggressive growth through acquisitions, completing 32 acquisitions in 2024 alone, totaling \(934 million in gross cash payments. These strategic moves have steadily increased revenues and earnings, highlighted by the company’s pro forma revenue growth from \)4.43 billion in 2023 to \(4.93 billion in 2024 and net income rising from \)899 million to $1.012 billion.
Insights from earnings calls reflect the company’s focus on blending innovation with specialization, perfectly aligning with Accession’s culture of entrepreneurial risk management and specialty insurance innovation. This transaction reinforces Brown & Brown’s position as a leader in insurance brokerage by integrating high-performing teams and expanding service offerings.
Looking ahead, the acquisition positions Brown & Brown to capitalize on market consolidation in the insurance brokerage industry, providing enhanced scale and capabilities. The combined organization is well-placed to enhance revenue streams, expand market share, and drive cash flow growth through diversified specialty insurance products.
Investors and industry watchers will note that the transaction incorporates cash and debt-free structuring, backed by committed financing from BofA Securities and J.P. Morgan Securities. Regulatory approvals are anticipated without delay, as the Hart-Scott-Rodino waiting period has expired.
For more detailed financials and the original filing, visit the SEC source document: https://sec.gov/Archives/edgar/data/79282/000119312525138153/d32630dex991.htm
Tags: BRO, Brown Brown, FY 2025 Q3, insurance brokerage acquisition, specialty insurance market, M&A impact, risk management solutions