Howden Eyes US Market with Potential Risk Strategies Acquisition
Deal News | Feb 03, 2025 | Re-Insurance News
Howden, a global insurance and reinsurance brokerage group, is reportedly in discussions to acquire Risk Strategies, a prominent US brokerage firm currently backed by private equity firm Kelso & Co. This potential acquisition underscores Howden's strategic move to expand into the American retail insurance market, enhancing its competitive positioning. Talks are ongoing with no assurance of completion, as parties such as General Atlantic, HgCapital, and Caisse de dépôt et placement du Québec back Howden's efforts. The prospective acquisition reflects a broader trend of consolidation within the insurance brokerage sector, as seen with previous transactions like Marsh McLennan’s acquisition of McGriff Insurance Services. Key players declined to provide comments on the talks.
Sectors
- Insurance
- Private Equity
Geography
- United States – Risk Strategies, the acquisition target, is a US-based insurance broker.
- Global – Howden is a global insurance and reinsurance broker seeking to expand its market presence internationally, specifically into the US market.
Industry
- Insurance – The article discusses acquisition talks within the insurance brokerage sector, highlighting an attempt to consolidate market position through strategic acquisition.
- Private Equity – Kelso & Co, a private equity firm, backs Risk Strategies, which is central to the acquisition discussions by Howden.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Howden | Bidding Company | Company | A global insurance and reinsurance brokerage group looking to expand into the US market by acquiring Risk Strategies. |
| Risk Strategies | Target Company | Company | A major privately held US brokerage firm, currently backed by Kelso & Co., targeted for acquisition by Howden. |
| Kelso & Co. | Private Equity Backer | Company | A private equity firm backing Risk Strategies, the company involved in the acquisition discussions with Howden. |
| General Atlantic | Investor | Company | An investor supporting Howden in its acquisition endeavors. |
| HgCapital | Investor | Company | An investor backing Howden in its strategic expansion plans. |
| Caisse de dépôt et placement du Québec (CDPQ) | Investor | Company | One of the investors in Howden, supporting its growth and acquisition strategy. |