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Member, Beacon International Group, Ltd.
SAN DIEGO—Brown & Brown Inc. is acquiring the parent company of San Diego-based managing general agency Arrowhead General Insurance Agency Inc. for $395 million, Brown & Brown said Friday.
According to Brown & Brown, the deal for Arrowhead General Insurance Agency Superholding Corp. is a cash transaction and not subject to financing conditions. The deal is expected to close in January subject to customary closing conditions, including regulatory approval.
Arrowhead, a national insurance program manager; its third-party administrator, American Claims Management Inc.; and other subsidiaries are expected to have total 2011 revenue of $105 million, according to Brown & Brown.
10% revenue increase
“This transaction brings many exciting opportunities to Brown & Brown,” J. Powell Brown, president and CEO of Daytona Beach, Fla.-based Brown & Brown, said in a statement announcing the deal. “We believe Arrowhead has built a strong management team and an organization that enjoys an excellent reputation within the industry.”
Arrowhead should “significantly expand” Brown & Brown’s insurer relationships and products and services it offers, he said.
“It is expected that this transaction will increase our total annual revenues and number of team members by approximately 10%," Mr. Brown said in the statement.
The purchased company will continue to operate as Arrowhead.