Brown & Brown Inc. continues to see good opportunities to acquire businesses and to grow organically, but is mindful of potential fallout from the conflict in Ukraine, its top executive said Tuesday.

“We continue to seek businesses that fit culturally and make sense financially. That’s the basis of our disciplined M&A strategy,” J. Powell Brown, the brokerage’s president and CEO, said during a conference call with analysts Tuesday morning discussing its latest acquisitions.

On Monday, Brown & Brown said it had agreed to acquire London-based brokerage Global Risk Partners Ltd. – its second international acquisition of the year, and third acquisition overall since January.

The deal will add $340 million in annual revenue and more than 2,100 employees in 112 offices across the United Kingdom and Ireland.

Brown & Brown on Feb. 7 entered into an agreement to acquire the operating companies of London-based wholesale broker BDB Ltd., and a deal to acquire Vero Beach, Florida-based MGA Orchid Underwriters Agency and CrossCover Insurance Services was announced Feb. 28.

Brown & Brown will pay around $2.5 billion in aggregate for the three acquisitions, and the transactions are expected to be financed with around $2 billion in newly issued debt and available cash on hand, its top executives said on the call.

The Daytona Beach, Florida-based brokerage expects to incur $22.5 million to $25 million in acquisition or integration-related costs in the next 12 months and some $5 million to $10 million in costs in 2023, Chief Financial Officer Andrew Watts said.

“We are very excited to have these three organizations join Brown & Brown. They have broad capabilities, good growth outlook, good margins and robust cash generation profiles,” Mr. Brown said.

GRP’s business – focused on the small to middle market, with larger account capabilities – is very similar to Brown & Brown’s and will expand its global capabilities, Mr. Brown said.

Assuming the acquisition of GRP closes on or around July 1, estimated acquired annual revenues will total $413 million to $437 million in the 12 months ended June 30, 2023.

The three deals will add 2,400 employees, bringing Brown & Brown’s total headcount to roughly 14,500 by July 1.

Brown & Brown’s approach to global expansion continues to be disciplined, Mr. Brown said on the call.

“The acquisition space is choppy. Some years we do a number of them and some years we don’t, but the most important thing is cultural fit,” Mr. Brown said.

Brown & Brown’s M&A strategy is generally focused on larger geographies, generally English-speaking that have rule of law, stable governments and economies, he said.

The brokerage is mindful of the potential business impact of Russia’s involvement in Ukraine, Mr. Brown said during Q&A with analysts, adding that Brown & Brown doesn’t do business in either country that he is aware of.

“Any time you have any type of conflict internationally it’s on our screen. Any time it’s in Europe it’s more on our screen and how that could impact our business,” he said.

“We hope that the conflict in Ukraine will be resolved sooner than later, but hope and a prayer is not a good business strategy, so we’re going to be prepared that that could go on for a while and impact supply chains and gas prices and all kinds of other things but we’re going to continue to sell service insurance,” Mr. Brown said.

“Our thoughts and prayers go out to the people of the Ukraine under this very difficult situation. We may sell insurance, but we surely feel for the folks that are in this terrible conflict,” he said.

In 2011, Brown & Brown was substantially a U.S.-based-only organization, Mr. Watts said. “Through the acquisitions, we’ve started to build out our global footprint.”

In 2021, some 3 percent of its revenue was generated outside the U.S. after it acquired Canadian managing general agent Special Risk Insurance Managers Ltd. and Cork, Ireland-based O’Leary Insurances Ltd. Following the GRP and BDB deals, some 22% of its revenues will be generated outside the U.S.