Consolidation within the excess and surplus lines insurance distribution sector has continued over the past year.
“We see consolidation through mergers and acquisitions particularly on the distribution front,” said David Nelson, Scottsdale, Arizona-based senior vice president of contract and program underwriting at Nationwide Excess & Surplus.
“There’s been a lot more interest because those distributors are the ones that are reaching out to the clients and bringing that business back to the insurance companies,” said David Blades, associate director of the industry research team at Oldwick, New Jersey-based rating agency A.M. Best Co. Inc.
Although deals have waned this year because of COVID-19, “the interest is still there,” he said.
Among recent deals, in June Chicago-based Ryan Specialty Group PLLC and Delray Beach, Florida-based All Risks Ltd. said they had signed a definitive agreement to merge. Ryan is the third-largest specialty distribution firm and All Risks is the fifth largest (see ranking)
Wholesale broker Worldwide Facilities LLC, based in Los Angeles, said in August it had acquired Clearwater, Florida-based Clearwater Underwriters Inc., a surplus line managing general agent.
In October, Charlotte, North Carolina-based AmWINS Group Inc. said it had signed a definitive agreement to acquire Stealth Partner Group, a Scottsdale, Arizona-based independent service general agent specializing in medical stop-loss insurance.
In addition, wholesaler CRC Group, based in Birmingham, Alabama, said in August it had opened a new Indianapolis office and made several strategic hires, while also considering merger and acquisition targets in the region.
