The main M&A story of 2020 was more of a global than a national story, but it attracted more readers in each geographic location than any other. Since it was first announced in March, the proposed merger between Aon and Willis has remained the main merger and non-merger insurance story throughout the year. But there were other proposed and completed transactions that caught the attention of the Insurance Journal Midwest audience. Here are the most popular M&A reports of interest to Midwestern readers in 2020:
Aon is going to buy Willis Towers Watson
Global insurance brokers Aon and Willis Towers Watson announced in March that they had agreed to merge in an all-equity transaction with an implied combined share value of approximately $ 80 billion. Upon completion of the combination, Aon's existing shareholders will own approximately 63% and existing Willis Towers Watson shareholders will own approximately 37% of the combined company on a fully diluted basis. According to S&P, Aon plans to partner with Willis in an all-stock transaction worth approximately $ 30 billion, exchanging Willis stock for Aon stock. The combined company will be named Aon. Combined, the companies have more than $ 20 billion in revenue. Aon reported $ 11 billion in revenues with $ 2.2 billion net income for 2019, compared to $ 9 billion in revenues and $ 1.4 billion net income for Willis Towers Watson. Aon will maintain its headquarters in London, United Kingdom. The parent company is incorporated in Ireland. The combined company will have 95,000 employees worldwide, with what it said will be a "significant presence" in Chicago, New York and Singapore. John Haley will assume the role of Executive Chairman with a focus on growth and innovation strategy. The combined company will be led by Greg Case and Aon Chief Financial Officer Christa Davies. The board of directors will consist of proportional members of the current directors of Aon and Willis Towers Watson. In December, Aon confirmed that the European Commission has begun a review of the proposed merger. Aon said the review is a common next step "for a transaction of this size and complexity" and said it is on track to close the deal in the first half of 2021.
Allstate buys National General for $ 4 billion, Growing Auto, Independent Agent Business
The American insurer Allstate Corp. National General Holdings Corp. for about $ 4 billion in cash, expanding its auto insurance business at a time when the coronavirus has crushed road traffic and reduced claims. The deal announced in July implies a total deal value of $ 3.92 billion and a premium of $ 3.92 billion, calculations by Reuters showed. The New York-based National General provides personal and commercial auto, homeowner, umbrella, recreational vehicles, motorcycles, lenders, supplemental health, and other niche insurance. Auto insurance accounts for about 60% of the premium with a significant presence in the non-standard automotive market. "The acquisition of National General accelerates Allstate's Illinois-headquartered strategy to increase market share in personal property liability and significantly expands our distribution of independent agents," said Tom Wilson, Allstate Chief Executive Officer. National General has approximately 42,300 independent agents. Allstate becomes one of the top five personal lines providers in the independent agent distribution channel by combining Encompass and Allstate & # 39; s Independent Agent businesses with National General.
In a first, State Farm to acquire Texas non-standard auto insurance company GAINSCO
State Farm Mutual Automobile Insurance Co. acquires a non-standard Dallas auto insurer, GAINSCO, in a $ 400 million cash transaction in September. It is the first time in State Farm's 98-year history that it has acquired an insurance company. GAINSCO specializes in minimum limits on personal car coverage and actively distributes its non-standard personal car products through independent retail agents in Arizona, Florida, Georgia, New Mexico, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, Ohio and Alabama. Its insurance business is conducted through its subsidiary, MGA Insurance Company Inc., a Texas corporation.
Marsh & McLennan Agency acquires Illinois Independent Agency, Assurance
Marsh subsidiary Marsh & McLennan Agency LLC (MMA) has owned Assurance Holdings Inc., based in Schaumburg, Illinois. Founded in 1961, Assurance is a full-service brokerage that provides corporate insurance, employee benefits, private customer insurance and retirement services to businesses and individuals across the country. It was ranked 29th on Insurance Journal's list of the 100 Best Independent Agencies in 2019. Assurance will operate as MMA's Midwestern regional headquarters under the leadership of Anthony (Tony) Chimino, CEO of Assurance. Chimino will report to David Eslick, Chairman and CEO of MMA. Assurance's 525 colleagues will join MMA and continue to operate from their offices in Schaumburg and Chicago, Illinois.
Ryan Specialty Group and All Risks complete merger
Specialist insurance brokers Ryan Specialty Group and All Risks completed the merger of the two firms to form Ryan Specialty Group in September. The deal unites Chicago-based Ryan Specialty Group and its nearly $ 12 billion premium, and All Risks, headquartered in Delray Beach, Florida, which has nearly $ 2.6 billion in premium. The combination has approximately 3,300 employees and more than 70 offices in the United States, the United Kingdom and Europe. Only AmWINS and CRC Insurance Services are bigger than RSG and All Risks in the wholesale brokerage.
Brown & Brown Cancels Deal After Ohio Agency Exec Is Guilty Of College Scam
Brown & Brown Inc., based in Daytona Beach, Florida, has discontinued its Daytona Beach, Florida, Brown & Brown insurance brokerage. previously announced agreement to purchase HAUSER's assets, an insurance and investment firm headquartered in Cincinnati. Brown & Brown announced the termination of the agreement with Hauser on August 25, just days after it was reported that one of Hauser's directors, Mark Hauser, agreed to file a guilty plea in the university's admission scandal that a number of high-profile parents, including actresses Felicity Huffman and Lori Laughlin, and Laughlin & # 39; s husband, fashion designer Mossimo Giannulli. The Associated Press reported on August 21 that Mark Hauser, who lives in California, had agreed to plead guilty to a plan in which he paid $ 40,000 to manipulate his daughter's ACT exam. Brown & Brown's deal with Hauser was due to close in September. Founded 50 years ago by the Hauser family, the agency continues to operate from its headquarters in Cincinnati, Ohio, headed by James Stines.
Kemper acquires American Access Casualty in Illinois for $ 370 million
Chicago-based specialty insurer Kemper Corp. said in November that it had agreed to acquire American Access Casualty Co, and its associated captive insurance agency, Newins Insurance Agency Holdings, and its subsidiaries. AAC is headquartered in Downers Grove, Illinois. The $ 370 million transaction is expected to close in the first quarter of 2021. AAC offers specialty auto insurance policies for private passengers in Arizona, Illinois, Indiana, Nevada, and Texas. AAC issued $ 370 million in direct premiums in 2019 through 500 independent agents and 110 captive agents. AAC's multi-channel distribution strategy, its relationships with agencies and the close links with the markets it serves – especially the Spanish communities – have resulted in consistent profitability.
AssuredPartners acquires Corkill Insurance Agency in Illinois
AssuredPartners Inc. Corkill Insurance Agency Inc. from Elk Grove Village, Illinois. AssuredPartners said the Corkill acquisition will be its first in 2020. Corkill's 104 employees will remain under the operational leadership of Luke Praxmarer and Paul Praxmarer. The agency currently reports $ 23 million in annual revenue.
CBIZ acquires Alliance Insurance Services of Washington D.C.
CBIZ Inc., based in Cleveland, Ohio, a provider of financial, insurance and advisory services, acquired virtually all of the assets of the independent insurance agency Alliance Insurance Services Inc. in February. from Washington, D.C. Small and medium AIS clients include charter schools, real estate, construction and technology in the D.C. metro area. AIS has nine employees and approximately $ 1.6 million in annual revenue.
Michigan & # 39; s High Street Insurance Partners is acquiring three new agencies
In Traverse City, Michigan, High Street Insurance Partners acquired three agencies in May: two in Michigan and one in New York. These new agency partners are: Trust Shield Insurance Group in Schoolcraft, Michigan; Ken Bleeker Insurance Agency in Martin, Michigan; and Gates-Cole Associates in New Hartford, New York. High Street, one of 15 Huron Capital ExecFactor initiatives, was created to pursue acquisitions in the insurance agency market.
Iowa & # 39; s first MainStreet insurance company to acquire three new agencies
First MainStreet Insurance (FMSI), a Cedar Rapids, Iowa-based subsidiary of TrueNorth Companies, closed its acquisition of three new agencies in March. The company expanded into Western Iowa with the merger of EGR Insurance in Moville. Pat Rogers and team, a dedicated staff of 10, have long been a predominant player in their region. FMSI has also merged with Warth Insurance in Burlington, Iowa, led by Mark Warth and his team in southeastern Iowa. The further expansion of FMSI in southeastern Iowa is the merger of Rominger Insurance in Ottumwa. Tim Hardie and his team joined the FMSI platform after agreeing the terms for the transition from March 1. With the acquisition of these three agencies, FMSI increases its total revenues to more than $ 10 million. First MainStreet Insurance is an affiliated business unit of TrueNorth Companies.
One80 Intermediairs acquires Ohio's International Excess Program Managers
One80 Intermediaries, a national wholesale insurance broker and program manager headquartered in Boston, has acquired Beachwood, Ohio-based International Excess Program Managers (IEPM), a wholesale insurance brokerage and program manager operating in all 50 states. Founded in 1998, IEPM specializes in property, liability, inland navigation, errors and omissions, directors and officers, commercial vehicle and umbrella coverage. In addition to wholesale access, IEPM develops multi-state insurance programs for specialty industries, associations and policyholder groups. Services include underwriting, rating structures, policy issuance and regulatory compliance. One80 Intermediairs is a private, national company with offices all over the country.
Sompo acquires diversified crop insurance and forms AgriSompo North America
Sompo International Holdings Ltd. (SIH), a Bermuda-based specialty provider of property / casualty insurance and reinsurance, has acquired Lenexa, Kansas-based Diversified Crop Insurance Services (DCIS), a subsidiary of CGB Enterprises Inc. (CGB). DCIS and ARMtech, Sompo International's existing US federally sponsored multi-peril crop insurer, will now operate under the AgriSompo North America brand name and as part of the global AgriSompo platform. AgriSompo will become one of the largest crop insurance providers in the United States and the world with combined gross premiums of more than $ 2 billion, the company's announcement said.
Brown & Brown acquires assets from Berry Insurance Group in Ohio
Brown & Brown of Ohio has acquired virtually all of the assets of Berry Insurance Group in Ohio. Founded in 2002 by Mark Berry, Berry Insurance Group sells commercial and personal insurance in the border triangle of Cincinnati. Berry will continue to lead the Berry Insurance Group team from their offices in Terrace Park and Lebanon, Ohio. He will report to Tommy Huval, Regional President of Brown & Brown Retail. Brown & Brown Inc. is located in Daytona Beach, Fla.