GCTR exits AssuredPartners for $13.45bn

March 2025 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

March 2025 Issue

Arthur J Gallagher & Co has signed a definitive agreement to acquire AssuredPartners, a leading US-based insurance broker, for $13.45bn in an all-cash transaction.

The deal is expected to close in the first quarter of 2025, subject to regulatory approvals and customary closing conditions. According to a statement announcing the deal, the transaction is the largest sale of a US insurance broker to a strategic acquirer in the history of the industry.

Gallagher plans to pay for the acquisition using a combination of long-term debt, short-term borrowings, free cash and common equity.

Based in Orlando, Florida, AssuredPartners is the 11th largest insurance broker in the US. Founded in 2011 by private equity firm GTCR, in partnership with Jim Henderson, the company has a team of 10,900 professionals across North America and the UK. The company provides a suite of risk management solutions, including property and casualty and employee benefits insurance brokerage services, to commercial enterprises, public institutions and high-net worth individuals.

Over the past 13 years, AssuredPartners has acquired and successfully integrated over 500 businesses, building a national leader in insurance brokerage. GTCR originally sold the company to Apax Fund VIII in 2015, and GTCR reacquired a majority stake in partnership with Apax Fund IX in 2019. Today, the business is led by Mr Henderson and chief executive Randy Larsen.

The acquisition is expected to generate significant cost savings, estimated at around $160m. However, Gallagher anticipates spending about $500m, which includes $200m of non-cash retention awards, to integrate the two companies over the next three years. Despite these integration costs, Gallagher expects the acquisition to boost its earnings per share by 10 to 12 percent within the next year.

“Our collaboration with Jim, Randy and the team at AssuredPartners is a quintessential Leaders Strategy partnership, building an outstanding business alongside a world-class executive team,” said Aaron Cohen, managing director and head of financial services & technology at GTCR. “When we formed the partnership, the goal was to build a client-first culture at Assured, supported by a centralized best practice approach to technology, go-to-market and strong carrier relationships.

“We believe that Gallagher, with its strong service-oriented values, complementary business and geographic footprint, is the right home for AssuredPartners to continue on its path to broaden its suite of solutions and further improve client service,” he added.

“The sale marks a significant milestone in the Company’s journey of building one of the leading insurance brokers behind an ambitious strategy of transformational growth,” said David Donnini, managing director and head of business & consumer services at GTCR. “We are incredibly proud of the partnership we developed with Jim and the entire team at AssuredPartners, and the platform that was built over 13 years. The Company has a well-earned reputation for prioritizing culture, collaboration and client service, which has made it a great fit for so many agency partners and allowed Assured to scale at such an impressive pace.”

“Today’s news is the culmination of a tremendous effort on the part of the entire AssuredPartners team and we are excited about the future of the business,” said Mr Henderson. “Gallagher is a premier brand and platform in insurance brokerage and, together, I believe we will be even more successful offering clients best-in-class capabilities with industry leading depth and offerings.”

“GTCR has been a fantastic partner to us as we have grown AssuredPartners into what it is today, and we are excited about our road ahead, benefitting from the innovation and expertise of the talented Gallagher team,” concluded Mr Larsen.

Richard Summerfield