On October 9, 2009
Insurance Brokers on the Hunt for Acquisitions, Advisen Says
Size matters, even when you are a mega-insurance broker, says insurance research firm Advisen Ltd., which predicts in its “The Carousel of M&As” report that the two biggest in the business, Aon Corp. and Marsh & McLennan Cos., are on the hunt for acquisitions. But here’s the counterargument: some things matter even more, such as making money. Brokers are the people who sell insurance policies to companies. Advisen says Aon and Marsh are in a head-to-head competition to achieve dominance and are looking to scoop up middle-market brokers, those who focus on smaller companies, as fast as they can. The middle-market is considered the sweet spot because, while larger companies will shop for price and dump a broker who can’t…
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