Brown & Brown Inc. said late Monday it would buy London-based brokerage and managing general agent Kentro Capital Ltd. in a deal that will significantly expand its international reach.
Terms of the deal, which is expected to close in the fourth quarter, were not disclosed.
Kentro, which has about 350 employees, operates MGA Nexus and brokerage group Xenia, and manages more than 500 million pounds ($620 million) in gross premium, Colin Thompson, chief executive of Kentro, said in an interview. The company reported £16m in earnings before interest, tax, depreciation and amortization in 2021, the latest year for which figures are available.
Nexus focuses on specialty coverages such as financial lines, trade credit, marine, aviation and surety, among other lines, and has made 1
6 acquisitions since it was founded in 2008, Mr. Thompson.Xenia’s business consists of 90% trade credit brokerage and 10% financial lines. The unit has made 10 acquisitions since its inception in 2017.
P. Barrett Brown, managing director of retail at Brown & Brown, said the deal will be among the brokerage’s largest acquisitions to date and will broaden Brown & Brown’s international operations.
Outside of North America, Brown & Brown currently has operations in the UK, Ireland, Italy and Belgium. Kentro has offices in Dubai, France, Germany, Hong Kong, Italy, Malaysia, the Netherlands and the USA.
The deal fits Brown & Brown’s acquisition strategy, Brown said.
“It fits right into our strategy in the MGA/MGU arena and the insurance agency landscape,” he said. “It really aligns well with our wholesale and retail capabilities and ambitions, so it’s not wide left or wide right, it’s right in the middle.”
Source link
