Insurance brokerage Brown & Brown Inc., based in Daytona Beach, Fla., said it is acquiring Wright Insurance Group L.L.C. of Uniondale, N.Y., for $602.5 million.
The price includes $587.5 million for Wright's programs business and $7.5 million for Wright National Flood Insurance Co., Brown & Brown said Wednesday in a statement.
Wright is owned by management and Aquiline Capital Partners. The transaction is expected to close in April, subject to approvals, the brokerage said in the statement.
The deal will give Brown & Brown a “substantial presence” in the National Flood Insurance Program and “allows for growth initiatives … leveraging Wright's market expertise, tenured client relationships and infrastructure,” Brown & Brown said in the statement.
The programs business, a service provider for government-sponsored insurance programs and proprietary national and regional programs, had 2013 net adjusted revenues of $114 million and is the largest component of the deal, Brown & Brown said.
“Wright Insurance Group has an enviable history of solid growth and impeccable client service. With the support of its lead equity partner, Aquiline Capital Partners, Wright added a unique asset with a national position in the Wright WYO flood program,” said J. Powell Brown, president and CEO of Brown & Brown.
“They (Brown & Brown) are an ideal owner of Wright and share our positive outlook for the business and appreciation for the quality of the existing management team,” Jeff Greenberg, CEO of Aquiline Capital Partners, said in the statement.
Wright management will remain in place and continue to operate from offices in Uniondale and Albany, N.Y., and St. Petersburg, Fla., according to the statement.
Brown & Brown is the seventh-largest broker of U.S. business, according to Business Insurance's latest ranking.