Arachas continues its buying spree by acquiring Glennon Insurances in the latest deal in the rapidly growing insurance broker industry.
The company, controlled through the investment firm of private equity UK broker Ardonagh It announced that it reached an agreement to purchase Glennon following “a highly contested race” for the independent broker as per Arachas chief executive Conor Brennan.
The acquisition will bring EUR80m in annual fees to the growing broker network, which includes the similarly sized Hopper Dolan that the company purchased in the last year.
The 75-year-old Glennon is a trusted client relationship provider from a wide range of sectors, including construction, retail, medical professional services, as well as real estate.
The company is involved in the areas of corporate, SME employee plans, employee benefits, and affinity motor and home businesses.
The acquisition will increase Arachas’s total team in Ireland to more than 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.
Large international and private equity brokers are actively seeking out in Ireland’s insurance broker market which is extremely fragmented and under increased costs from regulations.
The world’s largest insurance brokerage Gallagher has entered the market this month when it purchased Innovu which is a private equity-backed company that had been purchasing local brokers over the past four years.
Quote Devil The low-cost broker was bought by the private equity firm which owns Chill Insurance in April for EUR30m in the latest numbers revealed in a recent instance involving the owners of the company.
Other significant deals that took place in the past year include the sale of Chill Insurance and Gallivan Murphy both for EUR100m as well as numerous bolt-on acquisitions of UK agent Aston Lark.
Arachas has been working on similar strategies since its formation in the company in. The company is controlled by Ardonagh the UK‘s biggest independent broker. It is implementing the concept of piecemeal consolidation in the European markets.
Ardonagh was able to secure more than $1 billion (EUR980m) in new funds from its owners Madison Dearborn and HPS Investment Partners in December of last year.
The British-based company, led by Irish CEO David Ross, bought Arachas for EUR250m in 2020 . It then later bought US company Accurisk and Australian company Resilium in 2021.
