M&A – Will You Be Affected?

M&A – Will You Be Affected?

Despite an uncertain 2020, many brokerages have sprung into 2021 hungry for growth. Whether that be growing through talent acquisition or through acquiring other brokerages, we have seen a large amount of movement in the market this year. It seems as though every week there is a new announcement of a merger or acquisition, despite the hard market keeping everyone very busy. This is hopeful; it means things are getting back to normal and we can look forward into 2021 with growth goals of our own. But, with movement in the market comes change. And while change can be a great thing, it can also cause shifts in our “normal” that require us to evaluate where we are in our career and if there is a better opportunity out there for us.

By now, you’ve probably heard about the changes already happening with the Aon/Willis merger. In 2019, when the news was first leaked about the merger, there was a lot of uncertainty cloaking this unprecedented teaming up of alpha houses. In 2020, 70% of executives took a pay cut at Aon in the midst of the pandemic. While this was due to COVID-19, some wondered if it also had to due with the impending merger. Just a few months after the controversial decision, Aon announced that they would be reversing the pay cut and in time, would repay it’s employees and leadership. Earlier this month it was released that Aon would be divesting parts of WTW’s specialty verticals. To some, this was an expected move from Aon as it seeks approval from the EU. To others, this started the snowball effect of wondering what else could change. Then, as the snowball rolls even further down the mountain, sources released whispers that Aon might also be divesting entire offices in the US to appease the DoJ. And the sharks are already circling… Gallagher has it’s eye on Willis’ aerospace and manufacturing units while entire teams have already defected to Lockton.

If the Aon-Willis merger seems far off to you, let me point out a few other significant movements.

  • Marsh & McLennan Agency acquires PayneWest Insurance in the PNW.
  • HUB International acquires Conover Insurance in the PNW (along with many others nationwide).
  • IMA Financial acquires Bolton & Company and KPD Insurance in the West.
  • Alera Group acquires The Waterford Group in New York.
  • The Hilb Group acquires Clarus Benefits Group in Texas and McCartha, Cobb & Associates in South Carolina.

The list goes on…

My long-winded point? After a year of feeling out of control, wouldn’t you like to have some say in your next career steps? Even if the M&A that effects you is good, we’ll help you realize that. We are consultants, so the approach we take is to make sure you’re in the best possible position you can be in, and if that’s right where you are… then we wish you well and hope to stay in touch. But if it’s somewhere else, wouldn’t you want to make sure you’re making the right decision for yourself, your clients, and your family? If you haven’t been affected by M&A and don’t think you ever will be… well, look around. And then reach out to us for when it does happen in 5 years and you want to be ahead of the game.

Getting on a call with one of our Executive Search Consultants is simply exploratory, informative, and completely confidential. We have Consultants who specialize in each region, that means they are zeroed in on the trends happening right where you are. 

Consultants – https://kbicblog.com/blog/insurance-recruiting/meet-the-team/ 

Please feel free to reach out to get connected with one of our consultants.

Elaine Rembecki                                                                                                                                    Head of Research & Business Development                                                      erembecki@kbic.com
Direct: 972-265-5373
https://kbicblog.com/ 

 

Sources:

https://www.businessinsurance.com/article/20210326/NEWS06/912340744/Aon-execs-see-higher-pay-a-year-after-controversial-salary-cuts-Greg-Case-Christ#:~:text=The%20brokerage%20also%20announced%20that,repay%20withheld%20amounts%20plus%205%25.

https://www.insuranceinsider.com/article/28e4u6zk4m9825ypoyfpc/aon-willis-to-divest-parts-of-finpro-cyber-and-aerospace

https://www.insurancebusinessmag.com/us/news/breaking-news/marsh-and-mclennan-agency-acquires-paynewest-251276.aspx

Aon / WTW: Reports suggest expansion of divestment to the US needed