Private equity and large international brokers have been on the hunt in Ireland’s fragmented insurance broker market
Arachas is continuing its buying spree with the acquisition of Glennon Insurances in the latest deal in the rapidly consolidating insurance broker sector.
The company, which is owned by the private equity-backed UK broker Ardonagh, said it had reached an agreement to buy Glennon after “a highly contested race” for the independent broker, according to Arachas CEO Conor Brennan.
The purchase will add €80m in annual premiums to Arachas’s expanding network of bolt-on brokers, including the similar sized Hopper Dolan, which the company bought a year ago.
The 75-year-old Glennon brings client relationships from a diverse range of industries including construction, medical, retail, professional services and real estate.
The firm operates in corporate, SME, employee benefits, financial planning and affinity home and motor businesses.
The deal will bring Arachas’s total staff in Ireland to over 600.
“Glennon’s expertise for complex risks and large enterprises, combined with Arachas’s access to capacity and the scale of Ardonagh, is set to be a formidable combination and we look forward to collaborating on all the opportunities that lie ahead,” said Ardonagh group CEO David Ross.
Private equity and large international brokers have been on the hunt in Ireland’s insurance broker market, which is highly fragmented and is facing increasing cost pressure from regulation.
Global insurance broker Gallagher entered the market last month with the purchase of Innovu, a private-equity backed brand that itself had 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 in April for €30m, according to figures disclosed in a recent court case involving its owners.
Other big deals in the last year include sales of Chill Insurance and Gallivan Murphy – both for €100m – and numerous bolt-on acquisitions by UK broker Aston Lark.
Arachas has been pursuing a similar strategy since forming 2017. The firm is owned by Ardonagh, the UK’s largest independent broker, which is rolling out a piecemeal consolidation approach in its European markets.
Ardonagh banked more than $1bn (€980m) 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 went on to buy US company Accurisk and Australia’s Resilium in 2021.