Brown & Brown Inc. late Monday said it would buy London-based brokerage and managing general agent Kentro Capital Ltd. in a deal that will significantly expand its international reach.
Terms of the deal, which is expected to close in the fourth quarter, were not disclosed.
Kentro, which has about 350 staff, operates MGA Nexus and brokerage group Xenia, and manages more than £500 million ($620 million) in gross written premium, said Colin Thompson, CEO of Kentro, in an interview. The company reported £16 million in earnings before interest, taxes, depreciation and amortization in 2021, the latest year for which figures are available.
Nexus focuses on specialty coverages such as financial lines, trade credit, marine, aviation and surety, among other lines, and has made 16 acquisitions since it was founded in 2008, Mr. Thompson said.
Xenia’s business is in 90% trade credit brokering and 10% financial lines. The unit has made 10 acquisitions since it was established in 2017.
P. Barrett Brown, president – retail at Brown & Brown, said the deal will be among the brokerage’s largest acquisitions to date and will broaden Brown & Brown’s international operations.
Outside of North America, Brown & Brown currently has operations in the United Kingdom, Ireland, Italy and Belgium. Kentro has offices in Dubai, France, Germany, Hong Kong, Italy, Malaysia, the Netherlands and the United States.
The deal fits Brown & Brown’s acquisition strategy, Mr. Brown said.
“It fits right into our strategy in the MGA/MGU arena and underwriting authority landscape,” he said. “It certainly aligns very well with our wholesale and retail capabilities and aspirations, so it’s not wide left or wide right, it’s right down the middle.”