July 1, 2019 – Expansive US broker USI has completed the acquisition of wholesaler US Risk, in a transaction first revealed by The Insurer.
The Dallas-headquartered wholesale broker and program manager will continue to operate independently through brands such as US Risk, Oxford, MGB and James Hampden. The company confirmed today that founder Randall Goss will remain as CEO of US Risk, while his current leadership team will continue to lead the business.
In February, The Insurer revealed USI had shrugged off competition from rival expansive US retailers such as Hub International to acquire the wholesaler and MGA operator which was founded in 1986.
Valhalla, New York-based USI Insurance is predominantly a retail broker that was launched eight years later but is now ranked in the top 10 of global brokers by revenue size with a circa $2bn top line following the US Risk acquisition. It has more than 6,000 employees based in 150 nationwide US offices.
Although terms were not disclosed, US Risk is estimated to have revenues in the region of $70mn-$80mn and is likely to have commanded a handsome price considering strong valuations for high margin intermediaries.
Speaking today, Goss said he expects his firm to continue growing under its new owners.
“Having completed this transaction, US Risk will continue to accelerate the path we have set for ourselves as a leading program manager and specialty brokerage firm both domestically and internationally,” he said.
The executive added: “USI maintains an established track record of operating independent, successful program and specialty brokerage businesses. We remain committed to the same quality of service and the growth and profitability of our carrier partners and retail agents.”
The USI deal brought to an end a sales process run by Sandler O’Neill.
The wholesaler was previously owned by management and private equity firm Kohlberg & Company.
The private equity firm bought into the broker in July 2016 through its Kohlberg Investors VII fund and said it would reserve “substantial additional equity capital” to support US Risk’s growth initiatives.
US Risk’s biggest shareholder after the Kohlberg buy-in remained Goss.
