Click to read the official press release on investor.bbinsurance.com
DAYTONA BEACH, Fla., May 22, 2023 (GLOBE NEWSWIRE) — J. Scott Penny, chief acquisitions officer of Brown & Brown, Inc. (NYSE:BRO), today announced that Brown & Brown has entered into an agreement to acquire Kentro Capital Limited (“Kentro”). The transaction is expected to close in the fourth quarter of 2023, subject to certain closing conditions, including the receipt of required regulatory approvals.
Kentro is an insurance industry group headquartered in London, managing over £500 million of gross written premium. The collective Kentro team is composed of more than 350 insurance professionals operating from offices in the U.K., U.S., Europe, Asia and Dubai. From its founding in 2008, the Kentro companies, Nexus, Xenia, Millstream, Capstone Brokers and Spectrum Risk Management, have focused on product specialization and underwriting discipline as cornerstones for growth.
Currently, Nexus underwrites across a diversified portfolio of 20 risk classes, including trade credit, financial lines and aviation, through a network of over 800 retail broker partners in nine countries. The Nexus operating platform is purpose-built to maximize growth and underwriting performance. Xenia is one of the largest retail trade credit brokers in the U.K., with over 1,500 policyholders ranging from large corporates to SME customers. Millstream operates as a specialty travel and personal accident provider; Capstone Brokers provides access to the Asian marketplace for complex financial lines and digital asset risks; and Spectrum Risk Management offers intermediary, agency and advisory services in the MENA regions and Asia.
The Kentro Group and its individual business entities will continue to trade and operate as they have historically, with the same leadership team, brand and market focus. Colin Thompson, Kentro Group CEO, will continue to lead the business, supported by Stuart Rouse, Kentro Group CFO, and will work directly with Brown & Brown senior leaders, Mike Bruce, Senior Vice President; Chris Walker, Executive Vice President; and Barrett Brown, Executive Vice President.
Chris Walker said, “We are very excited to have Colin, the Kentro senior leaders and their talented staff join the Brown & Brown team. The cultural alignment between our businesses demonstrates our shared vision and commitment to assisting customers of all sizes to meet their unique risk management needs. Leveraging the Power of WE across our programs businesses and adding new specialty capabilities to our portfolio strengthens our presence with London markets and positions us for continued growth.”
Colin Thompson commented, “Joining the Brown & Brown team marks an exciting and pivotal milestone in the success and future of the Kentro Group. What has set the Kentro Group aside from others is our real-life entrepreneurial drive and ability to innovate, ably accomplished by our highly talented team. For me, it was crucial that Brown & Brown shares this approach and can support our desire to turbo-charge the growth and success of Kentro while ensuring the rewards flow to every teammate within the Group. We are at an extremely exciting time in our continued growth and development as a Group, and coming together with Brown & Brown will serve as an enabler and a catalyst for further sustained success.”
Barrett Brown added regarding Xenia, “We look forward to working with Tim Coles, Xenia’s CEO, and the entire Xenia Broking team. The great capabilities they bring will add significant value to our Retail segment teammates and customers. The breadth of their specialization in trade credit will drive our continued growth and expanded presence in the U.K. and Western Europe and provide for new opportunities in the U.S.”
Brown & Brown, Inc. (NYSE: BRO) is a leading brokerage firm, delivering risk management solutions to individuals and businesses since 1939. With 15,000+ teammates in 500+ locations worldwide, we are committed to providing innovative strategies to help protect what our customers value most. For more information or to find an office near you, please visit bbinsurance.com.
This press release may contain certain statements relating to future results, which are forward-looking statements, including those associated with this proposed acquisition. Examples of forward-looking statements regarding the acquisition described in this press release include statements regarding the expected benefits of the proposed acquisition, the impact of the proposed acquisition, required regulatory approvals, and the expected timing of the completion of the proposed acquisition. These statements are not historical facts but instead represent only Brown & Brown’s current belief regarding future events, many of which, by their nature, are inherently uncertain and outside of Brown & Brown’s control. It is possible that Brown & Brown’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. These risks and uncertainties include but are not limited to, the risk that regulatory or other approvals required for the proposed acquisition may be delayed or not obtained or are obtained subject to conditions that are not anticipated that could require the exertion of management’s time and resources or otherwise have an adverse effect on Brown & Brown; the possibility that certain conditions to the consummation of the proposed acquisition will not be satisfied or completed on a timely basis and accordingly the proposed acquisition may not be consummated on a timely basis or at all; uncertainty as to Brown & Brown’s expected financial performance following completion of the proposed acquisition; risks related to the integration of the acquired operations, business and assets into Brown & Brown; the possibility that the anticipated benefits of the proposed acquisition are not realized when expected or at all, including as a result of the impact of, or issues arising from, the integration of the acquired operations into Brown & Brown; the risk that unexpected costs will be incurred in connection with the completion and/or integration of the proposed acquisition; the diversion of management’s attention from ongoing business operations and opportunities; unexpected costs, charges or expenses resulting from the proposed acquisition; disruption from the announcement, pendency and/or completion of the proposed acquisition or the integration of the acquired business, including potential adverse reactions or changes to business relationships with customers, employees, suppliers or regulators, making it more difficult to maintain business and operational relationships; competitive responses to the proposed acquisition; uncertainties as to the timing of the consummation of the proposed acquisition and the ability of each party to consummate the proposed acquisition; and other factors that Brown & Brown may not have currently identified or quantified. Further information concerning Brown & Brown and its business, including factors that potentially could materially affect Brown & Brown’s financial results and condition, as well as its other achievements, is contained in Brown & Brown’s filings with the Securities and Exchange Commission. All forward-looking statements made herein are made only as of the date of this release, and Brown & Brown does not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which Brown & Brown hereafter becomes aware.
For more information:
R. Andrew Watts
Chief financial officer