AssuredPartners and Gallagher Deal: Potential M&A Ripple Effect
On December 9, 2024, Gallagher made headlines with its jaw-dropping acquisition of AssuredPartners, a major player in employee benefits and property and casualty broker. The whopping $12bn deal caught the attention of many in the industry, including Mike Latham, CEO of Verlingue UK.
Latham predicts that this acquisition could set off a chain reaction in the M&A landscape, with competitors like Marsh and Aon likely to step up their game in response. He believes that this trend could ultimately lead to a reduction in the number of significant players in the market, affecting the choices available to clients.
The impact of such acquisitions goes beyond just the financial realm. Latham notes that cultural considerations are often overlooked in these deals, leaving employees in uncertain waters. He points to the example of Romero Group, acquired by AssuredPartners in 2023 and now part of the Gallagher family within a year, highlighting the quick pace of change in the industry.
Despite the potential shifts in the market, Latham remains unfazed about Verlingue UK’s position, viewing the growth of large organizations as an opportunity to differentiate themselves. With a focus on serving mid-sized clients with insurance and employee benefits needs, Verlingue UK aims to prioritize organic growth over aggressive acquisitions.
Latham’s insights shed light on the evolving landscape of the broker market, where strategic moves by key players like Gallagher can have far-reaching implications. As the industry navigates these changes, it will be interesting to see how brokers adapt and carve out their niche in this dynamic environment.
