AmWINS Group Inc. has acquired Colemont Insurance Brokers in Dallas, in a move that might make it the nation's largest wholesale brokerage, one consultant suggested. Financial terms of the transaction were not released.
In a statement, Charlotte, N.C.-based AmWINS said the two companies combined will distribute over $4.8 billion in annual premiums with more than 1,800 employees in 16 countries worldwide.
"Not only does this combination strengthen our geographic footprint, but more importantly, we have expanded the expertise and capabilities available to our clients," according to M. Steve DeCarlo, who will serve as chief executive officer of the combined firm.
The combination, he added, "results in broadened placement expertise, deepened collaboration and an overall ability to offer more solutions to our retail customers with an enhanced distribution system for our markets."
Gene Eisenmann, retired founder of Colemont, noted that "from the beginning, the two firms have had similar cultures–strongly founded in being independent and doing what is best for the client."
He added that "bringing the two firms together provides an opportunity to combine the best talent in the industry with access to the most diverse product solutions and unparalleled relationships with insurance carriers and markets."
AmWINS said this acquisition will mark its first foray into the international insurance marketplace.
"We have studied and evaluated many opportunities to grow our firm beyond the U.S. borders," said Skip Cooper, who will serve as president of the combined entity. "The opportunity to build upon the international network and capabilities of Colemont Global Group is an exciting part of this combination."
Audra Szollosy, senior vice president for the agency consulting firm Hales & Company (which was not involved in this deal), said the acquisition could put the organization ahead of CRC Insurance Services, which reportedly has over $3 billion in premium and is owned by Winston Salem, N.C.-based bank BB&T Company.
"I was shocked," she said. "This is a big deal and could be the sign of things to come."
Given Colemont's overseas presence, she called this a "fabulous combination."
After a very quiet 2009 in regard to merger and acquisition activity, she said this could be a sign of the beginning of additional consolidation, possibly among the top-10 insurance wholesale brokerages.
The combined companies will operate under the AmWINS Group name and be comprised of four divisions:
o AmWINS Brokerage, which distributes property and casualty and financial services products through retail brokerage clients.
o AmWINS Underwriting, which is the managing general agent.
o AmWINS Group Benefits, which designs, distributes and administers specialty group insurance products through retail insurance brokerage clients.
o Colemont Global Group, the company's international division, which operates as a full-service, worldwide insurance and reinsurance brokerage network headquartered in London with more than 25 offices in 16 countries.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.