Arachas buys Glennon Insurances as broker market consolidates

Arachas continues its spending spree with the acquisition of Glennon Insurances in its latest transaction in the rapidly consolidating insurance brokerage sector.

The firm, owned by private equity-backed British broker Ardonagh, announced it has reached an agreement to buy Glennon after “a hard-fought race” to become the independent broker, according to Arachas CEO Conor Brennan.

The purchase will add €80 million in annual premiums to Arachas’ expanding network of bolt-on brokers, including the similarly sized Hopper Dolan, which the company bought a year ago.

Glennon, 75, brings client relationships from a variety of industries including construction, medical, retail, professional services and real estate.

The Company is engaged in corporate, SME, employee benefits, financial planning and related home and automotive business businesses.

The deal will bring the total number of Arachas employees in Ireland to over 600.

“Glennon’s expertise in complex risk and large enterprises, combined with Aracha’s access to Ardonagh’s capacity and scale, will be a formidable combination and we look forward to working together on any opportunities that lie ahead,” said David Ross, CEO of Ardonagh -Group .

Private equity and large international brokers are preying on Ireland’s insurance brokerage market, which is highly fragmented and facing increasing cost pressures from regulation.

Global insurance broker Gallagher entered the market last month with the purchase of Innovu, a private equity-backed brand that has itself been buying local brokers for the last four years.

Quote Devil, the low-cost broker, was sold to the private equity group behind Chill Insurance for €30 million in April, according to figures released in a recent court case against its owners.

Other big deals last year included the sale of Chill Insurance and Gallivan Murphy – both for €100m – and numerous bolt-on acquisitions by British broker Aston Lark.

Arachas has followed a similar strategy since its inception in 2017. The company is owned by Ardonagh, the UK’s largest independent broker, which is introducing a phased consolidation approach to its European markets.

Ardonagh raised more than $1 billion in new funding from owners Madison Dearborn and HPS Investment Partners last December

The UK-based group, led by Irish CEO David Ross, bought Arachas for €250m in 2020 and bought US company Accurisk and Australian Resilium in 2021.

https://www.independent.ie/business/irish/arachas-buys-glennon-insurances-as-broker-market-consolidates-41878112.html Arachas buys Glennon Insurances as broker market consolidates

Fry Electronics Team

Fry Electronics.com is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@fry-electronics.com. The content will be deleted within 24 hours.

Related Articles

Back to top button