How does MMA’s $316 million FBBI deal fit into this? | Insurance business America
The agreement took a “pretty intense” 60 days, says the CEO of MMA Southeast
Insurance News
By Jen Frost
Marsh McLennan Agency (MMA) will acquire top 100 US insurance broker Fisher Brown Bottrell Insurance (FBBI) for almost $316 million. The deal gives the buyer a presence in the state of Florida and Mississippi and expands its reach in Alabama.
Reaching agreement on the deal took a “pretty intense” 60 days, Peter Krause, CEO of MMA Southeast, told IBA. The short time frame was made possible by the involvement of Morgan Stanley when Trustmark National Bank wanted to divest itself of its insurance business.
“It happened pretty quickly,” Krause said. “Normally [this takes longer]We’re constantly talking to different companies about possible acquisitions, getting to know them and making sure they get to know us – but these banking transactions… happen pretty quickly.”
According to MMA, the deal is expected to be completed by the end of the second quarter of 2024.
What does FBBI bring to MMA?
In addition to FBBI opening up opportunities for MMA in areas of the Southeast where the company doesn’t already have offices, Krause called its active presence in the middle market an asset for MMA that fits well with its core focus.
In addition to commercial property and casualty (P&C) insurance, FBBI has an employee benefits practice and brokers private insurance.
“They checked all the boxes,” Krause said.
MMA deals in 2023 and 2024
So far in 2023 and 2024, MMA has signed contracts for:
- April 2024 – Acquisition of FBBI announced for $315.9 million
- February 2024 – Q&N and Louisiana Insurance Companies
- September 2023 – Blue Water Insurance
- August 2023 – Graham Company for $307 million
- July 2023 – Integrity HR and Trideo Systems
- June 2023 – SOLV Risk Solutions
MMA is sticking to the “status quo” approach with FBBI
FBBI’s leadership team, including FBBI CEO Scott Woods, is expected to remain with the company. The employees of the bank-affiliated insurance agency should not expect stormy changes, emphasized Krause.
“The MMA approach is to maintain the status quo and give them the support they need,” Krause said. “I always say keep things simple – we focus on the colleagues and the customers, we have to keep a close eye on the customer, but what we’re really doing is keeping the train on the track and giving it stronger performance to offer.” Engine.”
Last year it added Kentucky-based agencies Blue Water Insurance and Integrity HR, as well as Illinois-based Trideo Systems and Texas-based SOLV Risk Solutions.
Do you have an opinion on this article about Marsh McLennan Agency’s (MMA) purchase of Fisher Brown Bottrell Insurance (FBBI) from Trustmark National Bank? Leave a comment below.
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2024-04-26 15:32:47
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