Global Insurance and Reinsurance Broker Howden Has Been Eyeing An Entry Into U.S. For A While
Various publications are reporting that the London-based Howden is in talks to purchase Risk Strategies, or more specifically, the company’s private equity backer Kelso & Co. As one of the largest privately-held insurance brokers in the U.S., the sale would representative would give Howden and instant entry throughout the country.
Three people and a dog
Howden is a specialist insurance broker that began back in 1994 ” as just three people and a dog.” The company is now a leading global insurance managing $42bn in premiums for its clients and with a staff of 19,000. The company is employee-owned with approximately 5,200 employees holding 30% of the shares in the Group. In addition, the company has three external minority shareholders: General Atlantic, CDPQ, and Hg. The final shareholder is the Howden Foundation, a registered independent charity with a 20% share in the Group.
The following is a brief history of the company in celebration of its 30th anniversary:
From Boston-based Agency to national broker
Similarly begun in the 90’s, Risk Strategies got its start in 1997. The firm was founded by current Chairman, Mike Christian, as a specialty risk management consultancy. Mr. Christian, an insurance industry veteran, had spent his career at that point working at a few different large, generalized brokerages. In starting up Risk Strategies, he saw a market opportunity to create a true specialist, by industry and product line, focused on a more consultative, business-first approach to solving the risk and liability issues faced by middle market organizations.
Fast forward 28 years and the company is now one of the top 10 largest privately held insurance brokerages in the United States. In 2015, Kelso & Co acquired a majority stake in Risk Strategies from Kohlberg & Co. Kelso & CO. is one of the oldest and most established firms in the private equity industry. It is also a leading investor in the insurance sector.
More about Risk Strategies
For those readers interested in learning more about Risk Strategies, the following articles by Agency Checklists may be of interest:
- Kelso & Co. Acquires Majority Stake in Boston’s Risk Strategies Company (2015)
- John Mina Reflects on Risk Strategies’ Rise from Boston Agency to National Broker (2022)
- Record Growth Marks Risk Strategies 25th Anniversary (2022)
According to the article in Bloomberg, the talks are ongoing with no certainty that a transaction will be the end result.
