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The big brokers are lining up London capacity to write follow lines on US risks. -
The group should also tilt capital allocation away from M&A and deepen its disclosure.
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Insureds often just want cover in place at the lowest price possible, and insurers oblige under the skeptical eye of regulators.
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The Florida of 2022 lacked stability and saw many carrier insolvencies.
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Challenges will include boosting the target’s organic growth, Building the Machine, and prepping for an IPO.
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After a period of re-assessing risk appetite, underwriters were signalling growth again – that was, before the fires.
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Risk Strategies looks like the deal that makes most sense, but other targets could include Galway or Hilb.
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The transaction comes after Kestrel explored a deal last quarter to raise ~$150mn of capital.
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Some will play “pretend and extend”, but others will sell to strategics or take the steep climb to an IPO.
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The deal is financially attractive, but risks diluting the jewel that is Gallagher’s US mid-market business.
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The deal dramatizes the jammed PE deals conveyor, with the playing field tilted towards strategics.
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This would allow the former Truist Insurance to place binders on its MGAs itself and open other growth opportunities in EC3.
