BEACH BUYS AXIOM RE FROM BROWN & BROWN
New York, January 1, 2015 - Beach & Associates has bought Brown & Brown's reinsurance broking arm Axiom Re in a move that demonstrates its ambition to expand with the backing of new majority investor Aquiline.
The transaction, for undisclosed terms, also sees the reinsurance broker enter into a "strategic relationship" with US broking giant Brown & Brown. And it reunites Beach's global president and CEO Grahame Millwater with Axiom Re CEO Mike Cross, after the executives worked together for more than two decades at Willis.
The acquisition of Axiom Re will significantly expand Beach's North American operations.
The deal brings Beach a presence in the US regional reinsurance market and enhances the firm's property expertise and analytics, including the addition of Axiom Re's Blue Sky cat modelling platform.
Sixth largest US insurance broker Brown & Brown bills Axiom Re as the seventh biggest reinsurance intermediary based in the US.
Cross brings a team of around 30 to Beach and will continue to operate out of the firm's current Burlington, North Carolina base.
In a statement, Beach said the acquisition emphasizes its position "as the leading global independent reinsurance adviser and intermediary".
Simon Hedley, CEO of Beach North America, said that adding a Southeast presence had been a strategic objective for the firm.
"It gives us reach to new clients, and the ability to enhance our offering to both Axiom's and Beach's existing clients. Our combination enhances our technical, analytical and modelling capability, and I am delighted to deepen and broaden our talent base in North America with the real experience and knowledge that Mike and the senior team bring, in a (re)insurance market undergoing accelerated evolution," he said.
Millwater highlighted the strategic relationship forged with Brown & Brown, with complementary skills and relationships that he said could add "significant value" to the two companies' clients and markets.
Cross added: "This is a great fit for our team of producers who look forward to utilizing the excellent resources that Beach has built and continuing the superior client service for which Axiom has become known."
New York-based private equity firm Aquiline took a majority stake in Beach last month in a move first revealed by The Insurance Insider back in August. Although terms of the transaction were undisclosed, Beach's senior partners now own a significant share of the company - approximately 25 percent - with the remaining 75 percent held by Jeff Greenberg-led Aquiline.
Beach's founder and chairman Jonathan Beach remains on its board of directors and retains a significant investment. Founded in 1988, Beach has more recently been evolving into a high-end boutique intermediary focused on specialist solutions, including capital markets products, specialty casualty, structured reinsurance and advising on portfolios of risk such as MGAsAbout Beach & Associates Beach is a leading independent specialty reinsurance intermediary with a reputation for innovative reinsurance placements for complex and technical books of business. Operating in London, Bermuda, Toronto, and New York, Beach works with major insurance companies to understand and achieve corporate risk management goals through the purchase of reinsurance.
2014 November 14 - Aquiline Capital Partners Announces Investment in Beach & Associates
2014 July 31 - Beach Capital Holdings Limited Announces Sale of Australian Operations
2013 February 5 - Beach & Associates Limited Announces the Appointment of David Sowrey as Executive Vice-President
2012 November 19 - Beach & Associates Announces the Formation Of Beach Capital Holdings Limited and the Appointment of Jonathan Beach as Chairman and Grahame Millwater as President and CEO