J. Scott Penny, chief acquisitions officer of Brown & Brown (BRO), and Jay Levy, Howard Levy and Al Eskanazy, the majority shareholders of Morstan General Agency, Morstan Plus and related companies announced that a subsidiary of Brown & Brown, has entered into an asset purchase agreement pursuant to which Brown & Brown will acquire substantially all of the operating assets of Morstan.
The transaction is expected to close in June 2016, subject to customary closing conditions.
Morstan, which has been in operation since 1964, is a wholesale MGA/MGU offering a wide range of products in commercial lines, personal lines, employee benefits and life insurance products.
The wholesale agency operates from its headquarters in Manhasset, New York, with additional offices in New York City, New Jersey and Florida and had total approximate annual revenues in 2015 of $34 million.
The new profit center will continue to operate under the Morstan name from its headquarters in Manhasset, making it the fifteenth distinct brand in the Brown & Brown Wholesale Division.
The profit center will be guided by the sales and underwriting leadership of Jay Levy and Howie Levy and will report to Kathy Colangelo, Senior Vice President of the Brown & Brown Wholesale Division. Al Eskanazy will assist with transition of the new profit center.
Tony Strianese, President of the Brown & Brown Wholesale Division, stated, "Morstan General Agency has been an integral part of the wholesale insurance market in Long Island and New York City for many years.
"The leadership team has expanded the wholesale expertise into surrounding states and Florida, while developing opportunities in emerging, underserved niche markets. We are excited to have Morstan as part of the Brown & Brown Wholesale team under the operational guidance of Jay and Howie."
Jay Levy stated, "We, at Morstan, have always strived to bring innovative insurance solutions to our retail partners through our strong relationships with carriers. We believe that joining with the Brown & Brown Wholesale Division will only enhance what we can bring to our strategic partners."
Howie Levy stated, "Morstan has always focused on the relationship with our carriers and retail agents as the primary driver of success for our organization. We know that Tony and Kathy share that focus, and, by joining with Brown & Brown Wholesale, we can continue to do what we have done historically from a much larger platform."
Brown & Brown, Inc., through its subsidiaries, offers a broad range of insurance and reinsurance products and related services. Additionally, certain Brown & Brown subsidiaries offer a variety of risk management, third-party administration, and other services.