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 Western audience. Here are the M&A reports that will be of most interest to readers of the West region 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.
Zurich and farmers agree to buy MetLife & # 39; s US P / C business for $ 3.94 billion
Zurich Insurance and Farmers Exchanges agreed in December to buy MetLife's US property and accident business for $ 3.94 billion, the insurers said, in an environment where the COVID-19 pandemic has made auto and home insurance companies more profitable. The Swiss insurer is contributing $ 2.43 billion to the deal through its Farmers Group Inc (FGI) unit, while the Farmers Exchanges will contribute $ 1.51 billion. The deal gives Farmers Exchanges, to which FGI provides administrative and management services, a nationwide presence in the US and access to new distribution channels.
Home Insurance MGA Hippo Completes Acquisition of Spinnaker Insurance Co..
In September, California-based Hippo, an insurtech general agent focused on home insurance, completed the acquisition of Spinnaker Insurance Co., with an expansion to other states on the board. The deal follows a multi-year partnership between the companies. Spinnaker is a New Jersey-based national property / casualty insurer, licensed to do business in all 50 states. Hippo noted that Spinnaker has been the carrier platform's largest partner since 2017. With Spinnaker and its other carrier partners, Hippo offers home insurance in more than 31 states.
Brown & Brown acquires Digital Insurance Agency CoverHound and its CyberPolicy Unit
Insurance broker Brown & Brown has acquired CoverHound, a digital property / casualty insurance marketplace, and CyberPolicy, CoverHound's small business subsidiary. California-based CoverHound launched in early 2010 and raised more than $ 112 million in venture capital over the past decade, including a $ 58 million round of funding in 2019 with lead investor Hiscox and other investors including Chubb, Aflac Ventures and MS&AD in Japan. In 2015, Chubb (then ACE) took a 24% stake in CoverHound. However, with this deal, Brown & Brown gets 100% ownership.
Tokio Marine Completes Acquisition of Pure Group
Tokio Marine Holdings announced in February that it had completed the acquisition of New York-based Privilege Underwriters Inc. and its subsidiaries, known as Pure Group, which specializes in the high net worth US insurance market. The purchase price was $ 3.1 billion (approximately JPY 325.5 billion). The deal was completed through Tokio Marine & # 39; s 100% subsidiary HCC Insurance Holdings, Inc. Tokio Marine acquired 100% of the shares of Privilege Underwriters Inc. from existing shareholders, including Stone Point (51%), KKR (34%), AXA XL (10%), Pure management and others (5%). For 2018, Pure reported a consideration of $ 229 million, pre-tax profit of $ 73 million and $ 963 million in premiums under management. The company profile consists of homeowners (57%), car (23%), inland shipping (9%) and other lines for high net worth customers.
Truist on track for 5 acquisitions to boost wholesale insurance business
In December, Truist Insurance Holdings, based in Charlotte, N.C., reported that it will complete five insurance acquisitions in the fourth quarter, adding more than $ 100 million in combined annual revenue to the wholesale division. The most recent of these transactions was the acquisition of Wellington Risk Holdings, Inc., an insurtech operating as a general manager in the authorized residential real estate markets, with a strong presence in Texas. Wellington has developed a virtual marketplace offering with an easy-to-use agent portal for real estate insurance placement. The insurance company, a subsidiary of Truist Financial Corp., has already completed three deals this quarter: W. Brown & Associates Property & Casualty, an Irvine, California-based surplus lines and MGA broker; Specialty Risk Associates, a Shreveport, Louisiana-based surplus lines and MGA broker; and Program Insurance Management of Sarasota, a Sarasota, Florida-based managing general underwriter with specialty programs for industrial chemicals manufacturers and distributors. In addition to Wellington, Truist said it expects a transaction by the end of the year with Fidelis Group Holdings, a Covington, Louisiana-based provider of specialty insurance products for the marine and freight industries. Truist Insurance Holdings, formerly BB&T Insurance Holdings, operates more than 250 offices through its subsidiaries: McGriff (consisting of McGriff Insurance Services and McGriff, Seibels & Williams); CRC Insurance services; Crump life insurance services; AmRisc; and its Premium Finance companies (AFCO Credit Corp., Prime Rate Premium Finance Corp. and CAFO).
Arthur J. Gallagher & Co. acquires CRES Insurance in Nevada
Arthur J. Gallagher & Co. acquired CRES Insurance Services in Las Vegas in June. The CRES team will continue to operate from its Las Vegas and San Diego locations under the leadership of Kevin Garvin, head of Gallagher & # 39; s North American Affinity operations. CRES markets error and omission insurance and risk management to brokers and professionals, particularly in the Southwest.
AssuredPartners buys Wateridge Insurance from San Diego
AssuredPartners Inc. In March, Wateridge Insurance Services Inc. from San Diego. The 67-person team has remained under the operational leadership of Jeff Byroads, John Clanton and John Dorris. Wateridge sells home, auto, life, health and business insurance. The agency reports $ 12 million in annual revenue.
Aspen Risk Management Group in California, acquired by TRISTAR
TRISTAR Insurance Group Inc. in January agreed to acquire Aspen Risk Management Group of San Diego, California. All Aspen employees will continue to operate under the name Aspen Risk Management Group, a TRISTAR company. In addition to its risk management services, Aspen offers remote ergonomics, online service platforms and specialty services for both commercial and government customers. Based in Long Beach, California, TRISTAR is an independent third-party claims manager for proprietary policyholders, insurance companies, program insurers, public entities, and risk pools.
TWFG Insurance acquires Penguin Insurance Services in California
Texas-based TWFG Insurance acquired Penguin Insurance Services in Milpitas, California in December. Penguin is a network of independent brokers that supports brokers located throughout California, Colorado, Nevada, Texas, Washington, and Arizona. The Woodlands Financial Group is a national insurance company based in The Woodlands, Texas.
Arthur J. Gallagher & Co. acquires The Merriam Agency
Arthur J. Gallagher & Co. acquired Charles W. Merriam & Son Inc., d / b / a The Merriam Agency, in September. Founded in 1895, The Merriam Agency has offices in New York State and Colorado Springs, Colorado. The team provides coverage for commercial, personal lines and employee benefits and specializes in serving nonprofits and social service providers in the United States.
Sompo acquires W. Brown & Associates in California
Sompo International Holdings Ltd. acquired W. Brown & Associates Insurance Services in Irvine, California in December. Brown has been a managing general underwriter for Sompo International since 2016. Brown offers general aviation insurance products and services for both air and ground risks. The Brown business will remain intact and will become a wholly owned subsidiary of Sompo International, a Bermuda-based specialty property / casualty insurer and reinsurer.
NFP acquires insurance agency Koty-Leavitt in Arizona
NFP acquired Koty-Leavitt Insurance Agency Inc. in Tucson, Ariz. In January, Lloyd Koty, a former co-owner of the company, joined NFP as senior vice president and reported to Ed Kurowski, director of the NFP West region. Koty-Leavitt specializes in insurance for medical device distributors. NFP is an insurance broker and advisor providing specialist property / accident, business benefits, retirement and individual solutions through its licensed subsidiaries and affiliates.
Arthur J. Gallagher acquires AWIS Group in California
Arthur J. Gallagher & Co. acquired the San Diego, California-based AWIS Group in November. The AWIS team will continue to operate from their current location under the leadership of Adam Mazan, head of the Pacific West Region for Risk Placement Services Inc., Gallagher's US wholesale brokerage. AWIS is a wholesale insurance broker that offers commercial coverage and high net worth personal lines primarily through California-based insurance agencies.
Crest Insurance Group acquires John Creps Agency in Arizona
Crest Insurance Group acquired John Creps Insurance Agency in Flagstaff, Arizona, in May. The Creps Agency is a property / accident agency that offers life and disability insurance in addition to annuities. Crest has Arizona offices in Tucson, Scottsdale, Flagstaff, Sierra Vista, as well as San Diego, California, and Denver and Ft. Collins, Colo.
InterWest acquires CBS Bond & Insurance Services in California
InterWest Insurance Services has acquired CBS Bond & Insurance Services in Sacramento, California. CBS specializes in bond and commercial insurance programs. InterWest is a regional insurance brokerage headquartered in Sacramento with 350 employees.