Brown & Brown to Acquire Accession Risk Management Group in $9.83 Billion Deal

Insurance brokerage firm Brown & Brown, Inc. has announced a definitive agreement to acquire Accession Risk Management Group for approximately $9.83 billion. This strategic move is set to significantly enhance Brown & Brown's market position and service capabilities within the insurance industry.

Accession Risk Management Group, headquartered in Boston, Massachusetts, is the parent company of specialty brokerage Risk Strategies and insurance wholesaler One80 Intermediaries. In 2024, Accession reported pro forma adjusted revenues of approximately $1.7 billion and placed $15.7 billion in insurance premiums. The group employs over 5,000 insurance professionals across the United States and Canada.

The acquisition is expected to close in the third quarter of 2025, pending customary closing conditions and regulatory approvals. Upon completion, Risk Strategies will become part of Brown & Brown’s Retail segment, with Accession CEO John Mina joining the retail senior leadership team. Additionally, Brown & Brown plans to combine its Programs and Wholesale Brokerage segments into a new Specialty Distribution segment, with One80 Intermediaries joining this new segment.

Funding for the acquisition will be secured through a combination of a $4 billion equity raise and $4 billion in bonds issued across various maturities. A $750 million escrow fund, consisting of cash and Brown & Brown common stock, will be established to secure indemnification obligations related to specific financial guarantee and final judgment preservation policies from one of Accession's subsidiaries and the unwinding of a related restructuring.

This acquisition is part of a broader trend of consolidation in the insurance brokerage industry, following similar large-scale mergers in recent years. For instance, in 2024, Aon acquired NFP for $13 billion, and Marsh McLennan purchased McGriff Insurance Services for $7.75 billion.

By acquiring Accession, Brown & Brown aims to expand its capabilities in property and casualty insurance and employee benefits, particularly strengthening its position in the middle-market segment. The transaction is expected to be accretive to Brown & Brown’s adjusted diluted net income per share in 2024, driving shareholder value through anticipated revenue and cash flow growth.

The consolidation trend in the insurance brokerage industry has several implications, including potential impacts on market competition, employment, and client services. While mergers can create efficiencies and enhance service offerings, they may also lead to reduced competition and affect employment within the industry.

The insurance brokerage industry has seen significant consolidation over the past decade, with firms seeking to expand their market share and service capabilities through strategic acquisitions. The Brown & Brown-Accession deal is among the largest in recent years, highlighting the ongoing trend toward consolidation in the sector.

This acquisition represents a significant step for Brown & Brown in enhancing its market position and service capabilities within the insurance industry. As the transaction progresses toward completion, stakeholders will be closely monitoring its impact on the competitive landscape and the broader implications for the insurance brokerage sector.