Log In

Reset Password

Brown & Brown acquires Beecher Carlson, may grow Bermuda office

NYSE-listed Brown & Brown is to acquire insurance broker Beecher Carlson Holdings, which could mean an expansion of its Bermuda office.

“The Bermuda office of Beecher Carlson will definitely continue as part of this transaction,” Robin Mehta, executive managing director of Beecher Carlson, told

The Royal Gazette yesterday.

“Brown & Brown does not have a presence on the Island so we see this as a great opportunity for growth in the Bermuda office. We have been assured by Brown & Brown that they are as committed to Bermuda as Beecher Carlson (who have been operating in here since 1981). We absolutely expect to see an increase in activity in both our brokerage and captive management operations.”

The Bermuda office at the Maxwell Roberts Building on Church Street currently employs around 13 people.

J Powell Brown, CEO and president of Brown & Brown announced yesterday that Brown & Brown was acquiring Beecher Carlson, which has operations that include retail brokerage, programme management and captive management, from Austin Ventures, FSPM and a group of individual employee and non-employee equity holders.

The cash transaction is expected to close in July.

Beecher Carlson, through its subsidiaries, had total annual net revenues for 2012 of $105.6 million.

Brown & Brown is ranked by Business Insurance magazine as America’s sixth largest independent insurance intermediary, while Beecher Carlson is ranked 27th.

As part of this transaction, Brown & Brown said Steve Denton, Beecher Carlson's current president, will be named a regional vice president of Brown & Brown, Inc and will serve as the CEO of Beecher Carlson.

Dan Donovan, Beecher Carlson's current CEO, will serve as executive chairman of Beecher Carlson.

Mr Denton and Mr Donovan will both be actively involved in the day-to-day operations of Beecher Carlson and will also join Brown & Brown’s Leadership Council, the company stated.

The large account division will remain intact, operating as Beecher Carlson under its current leadership based in Atlanta, Georgia.

The middle-market retail offices in Oregon, Arizona and Mississippi will become part of the existing Brown & Brown Retail Division.

The OnPoint programmes will become a part of Brown & Brown's National Programs Division.

"This transaction brings many exciting opportunities to Brown & Brown,” Powell Brown said.

“Beecher Carlson enjoys an enviable position in the industry segments in which it operates, especially in the large account space. We are bringing together great people and a shared customer service and sales culture. The addition of Beecher Carlson to the Brown & Brown team offers us an expanded footprint, new opportunities, enhanced resources and a strong leadership team to facilitate a seamless transition into Brown & Brown."

Mr Donovan stated, "This combination with Brown & Brown is very positive for our clients and employees and we look forward to continuing to build out the Beecher Carlson large account platform. Further, I have been working closely with Steve Denton and the entire Beecher Carlson leadership team and know Steve is the right person to lead the large account group to new heights as part of Brown & Brown."

And Mr Denton commented: "Brown & Brown is well known as one of the best run operations in the insurance distribution field. With our expertise in the large corporate arena, we represent a focused channel for growth for Brown & Brown. I also want to congratulate Dan Donovan, our leaders, and our dedicated employees for building the foundation of passionate client service, innovative products and services, and accountability around operational excellence. This foundation will serve us well as we invest and grow our brand as part of the Brown & Brown enterprise."

The total net consideration is $336.5 million ($360 million in cash with adjustments for working capital and the value of net tax operating loss carryforwards).

Brown & Brown, Inc, through its subsidiaries, offers a broad range of insurance and reinsurance products and related services. Additionally, certain Brown & Brown subsidiaries offer a variety of risk management, third-party administration, and other services.

You must be Registered or to post comment or to vote.

Published May 22, 2013 at 9:00 am (Updated May 21, 2013 at 7:19 pm)

Brown & Brown acquires Beecher Carlson, may grow Bermuda office

What you
Need to
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon