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1 July 2019 Merger & Acquisition Update: June 2019 Agent & Broker
Transcript of Agent & Broker - Optis Partnersoptisins.com/wp/wp-content/uploads/2019/07/Jun-2019-MA-Report.pdf ·...
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July 2019
Merger & Acquisition Update: June 2019
Agent & Broker
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Summary Information Page 4
Most Active Buyers Page 8
Totals by Buyer / Seller Type Page 10
Significant Transactions Page 13
Observations Page 15
Table of Contents - Agent M&A Update
2008 - 2019 Trending Information
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Quarterly M&A Activity
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2015 2016 2017 2018 2019
Quarterly M&A Activity
Q1 Q2 Q3 Q4
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328 transactions in 1H-2019, up from 300 for 1H-2018
665 transactions in past 12 months
Highest of all time, well ahead of 637 from 2018
Acrisure led all buyers with 39 transactions thru June 30, 2019,
but is their lowest total since 2016
Followed by Hub International (26), Patriot Growth and Assured
Partners (21), Broadstreet Partners (18) and Gallagher (16)
Private Equity-Backed / Hybrid (“PE/Hybrid”) responsible for
nearly two-thirds of all announced transactions in the past 12
months
Highlights of 1st Half 2019 M&A Activity
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457 461
611637
333
300328
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2015 2016 2017 2018 2017-1H 2018-1H 2019-1H
Summary Agency Acquisitions by Year
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Buyer by Type Ownership 2015 2016 2017 2018 Q1-2019
Acrisure PE / Hybrid 56 63 92 101 39
Hub International PE / Hybrid 37 45 49 59 26
Patriot Growth PE / Hybrid (*) (*) (*) (*) 21
AssuredPartners PE / Hybrid 38 28 26 37 21
Broadstreet Partners PE / Hybrid 26 27 32 34 18
Gallagher Public 27 24 30 30 16
OneDigital PE / Hybrid 2 8 13 24 15
Brown & Brown Public 12 5 8 23 11
Alera Group PE / Hybrid (*) (*) 38 28 10
All Other 259 261 323 295 151
Total Reported Transactions 457 461 611 637 328
(*) Company did not exist
Active Acquirers w 10 or More Deals in 2019:
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Buyer by Type Ownership 2015 2016 2017 2018 TTM
Acrisure PE / Hybrid 56 63 92 101 98
Hub International PE / Hybrid 37 45 49 59 52
Broadstreet Partners PE / Hybrid 26 27 32 34 39
AssuredPartners PE / Hybrid 38 28 26 37 38
Gallagher Public 27 24 30 36 37
OneDigital PE / Hybrid 2 8 13 24 26
Brown & Brown Public 12 5 8 23 26
Alera Group PE / Hybrid (*) (*) 38 28 23
Patriot Growth PE / Hybrid (*) (*) (*) (*) 21
All Other 259 261 323 295 305
Total Reported Transactions 457 461 611 637 632
(*) Company did not exist
Active Acquirers w Over 20 Deals in Past 12 Mos:
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0.0%
10.0%
20.0%
30.0%
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50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
2008q4 2009q4 2010q4 2011q4 2012q4 2013q4 2014q4 2015q4 2016q4 2017q4 2018q4
Rolling 12-Month Activity by Buyer-Type (% Total)
Other Public Private PE/Hybrid
The PE/Hybrid group has
grown from about 20% of the
total M&A activity in 2008 to
roughly two-thirds since mid-
2018
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2008q4 2009q4 2010q4 2011q4 2012q4 2013q4 2014q4 2015q4 2016q4 2017q4 2018q4
Rolling 12-Month # Transactions by Buyer-Type
PE / Hybrid Private Public Other
The growth in the M&A activity has been
driven almost exclusively by the rapid
expansion of the PE / hybrid buyer group
since 2012.
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0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
2008q4 2009q4 2010q4 2011q4 2012q4 2013q4 2014q4 2015q4 2016q4 2017q4 2018q4
Rolling 12-Month Activity by Seller-Type (% Total)
P&C PC.EB EB All Other
In 2008, each of the seller types
accounted for about 25% of all
transactions. By the end of 2015,
sales of P&C agencies has
consistently accounted for more
than 50% of all transactions.
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Seller Buyer2018 Business
Insurance RankDate
17 Agencies (Jan 2019)
4 others since
Patriot Growth
Insurance ServicesJanuary, 2019
Bouchard InsuranceMarsh McLennan
Agency#74 January, 2019
Tolman & Wiker Insurance Services AssuredPartners #88 February, 2019
JLT Aerospace Gallagher March, 2019
Lovitt & ToucheMarsh McLennan
Agency#77 April, 2019
US Risk Insurance Group USI Insurance Services July, 2019
Significant 2019 Broker Transactions
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Insurance AgencyLead Buyer /
InvestorDescription Date
Alliant Insurance
Public Sector Pension
Investment Board
(Canada)
New minority
investorJanuary, 2019
Assured Partners GTCRPartial sale by
APAX Partners
Announced
February, 2019
Relation InsuranceAquiline Capital
Partners
Parthenon Capital
and Century Equity
Partners
Announced
March, 2019
K2 InsuranceLee Equity Partners
(majority interest)Endeavor Capital April, 2019
Private Equity-backed Ownership Changes
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The pace and aggressiveness of the buyers continues to
push pricing and transaction counts to new limits
Pretty quiet during Q2-2019 in the Top 100 group, with only
one transaction closed during the quarter
Out of 67 total PE /Hybrid buyers active since 2008, 28
made acquisitions in 1H-2019, the highest total of any 6-
month period other than 1H-2018 when 30 completed one
or more acquisitions.
Other Observations & Comments:
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