How does MMA’s $316 million FBBI deal fit in?
How does MMA’s $316 million FBBI deal fit in? | Insurance Business America
Insurance News
How does MMA’s $316 million FBBI deal fit in?
Agreement took a “pretty intense” 60 days to reach, MMA Southeast CEO says
Insurance News
By
Jen Frost
Marsh McLennan Agency (MMA) is set to snap up top 100 US insurance broker Fisher Brown Bottrell Insurance (FBBI) for almost $316 million, with the deal delivering the acquirer a presence in the Florida panhandle and Mississippi and adding to its Alabama reach.
The deal took a “pretty intense” 60 days to agree on, MMA Southeast CEO Peter Krause told IBA. The short timeline was made possible by the involvement of Morgan Stanley as Trustmark National Bank looked to divest from its insurance operations.
“It moved pretty fast,” Krause said. “Typically [this takes longer], we’re constantly out talking to various firms about potential acquisitions, getting to know them, having them get to know us – but these bank transactions… move pretty quickly.”
The deal is expected to close by the end of Q2 2024, MMA said.
What does FBBI bring to MMA?
In addition to FBBI opening up opportunities for MMA in areas of the Southeast where it does not already have offices, Krause pointed to its active middle-market presence as a win for MMA that fits well with its core focus area.
In addition to commercial property and casualty (P&C), FBBI has an employee benefits practice and brokers personal lines insurance.
“They checked all the boxes,” Krause said.
MMA deals in 2023 and 2024
In 2023 and 2024 so far, MMA struck up deals for:
April 2024 – Acquisition of FBBI for $315.9 million announced
February 2024 – Q&N and Louisiana Insurance Companies
September 2023 – Blue Water Insurance
August 2023 – Graham Company for $307 million
July 2023 – Integrity HR and Trideo Systems
June 2023 – SOLV Risk Solutions
MMA to take a stick to the “status quo” approach with FBBI
FBBI’s executive team, including FBBI CEO Scott Woods, is expected to remain with the business. Staff at the bank-affiliated insurance agency should not expect whirlwind changes, Krause set out.
“The MMA approach is to keep things status quo and give them the support that they need,” Krause said. “I always say keep things simple – we focus on the colleagues and the clients, we’ve got to keep a close eye on the client but really what we’re doing is you keep the train on the track and providing them with a stronger engine.”
Last year, it added Kentucky-based agencies Blue Water Insurance and Integrity HR, Illinois’ Trideo Systems, Texas-based SOLV Risk Solutions.
Got a view on this article about the Marsh McLennan Agency (MMA) purchase of Fisher Brown Bottrell Insurance (FBBI) from Trustmark National Bank? Leave a comment below.
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