Florida-based Brown & Brown, a diversified insurance agency, brokerage and service organization, has reached an agreement to purchase The Wright Insurance Group in a transaction valued at approximately $602.5m.
The total net consideration that will be paid for the ownership interests of Wright includes cash payments of $587.5m for the Programs Business, $7.5m for Wright National Flood Insurance Company and $7.5m for WNFIC statutory surplus.
Under the terms of the agreement, Wright’s current operational leadership team will remain in place and will continue to operate from three offices in Uniondale, New York; Albany, New York; and St. Petersburg, Florida.
Wright’s public entity/program services/specialty operations in New York will report to Tony Grippa, regional vice president, and Wright’s flood program operations will report to Chris Walker, regional executive vice president.
The acquisition will enable growth initiatives that will focus on using Wright’s market expertise, tenured client relationships and infrastructure, according to the acquirer.
Once the transaction is completed which is expected to conclude in April 2014 and is subject to customary closing conditions, all of Wright’s operations will become part of Brown & Brown’s National Programs Division.
Brown & Brown CEO and president J Powell Brown said "We look forward to the opportunities ahead combining the skills and expertise of our new Brown & Brown teammates from Wright with the Brown & Brown platform to continue to serve Wright’s valued client base."
Through its subsidiaries, Brown & Brown provides various types of insurance and reinsurance products and related services.
Image: Brown & Brown to acquire Wright Insurance Group. Photo courtesy of adamr/ FreeDigitalPhotos.net.