When Jones-Dooley Insurance Brokers joined KRGinsure (formally RRJ Insurance Group) earlier this year, the Ajax, Ontario-based business cited their shared values of customer service and the market access that the wider group will be able to provide.
Here, RRJ Insurance Group co-chief executive Abraham Baboujian (pictured) speaks from the buyer’s perspective, sharing with Insurance Business his camp’s continuing growth strategy.
Insurance Business: What do you see as the biggest benefit for KRGinsure from the Jones-Dooley Insurance Brokers acquisition?
Baboujian: The addition of three wonderful, skilled, and qualified staff to bolster our Durham footprint was my main motivation. The potential immediate synergies was also a critical consideration.
IB: How about for the acquired business?
Baboujian: From my perspective, for the staff and for their clients, this was an opportunity for greater stability and opportunity. In addition, monetizing on an asset for financial security had to be a motivation. They have worked hard to build an asset, and they have earned the right to monetize on it.
IB: Are you actively looking to expand further?
Baboujian: Yes, I am. To add to our existing footprint (Toronto, Whitby, Peterborough, Lindsay, Orillia, and Kitchener) and expand into new territories, if the deal parameters made sense.
IB: As a leader with experience in combining different brokerage brands, what would you say is the biggest challenge when it comes to consolidation?
Baboujian: Staying focused on the strategy that put you in a position to make the acquisition, and be transparent with all involved parties about what your plans and expectations are. Communications is key, but you always need a clear and well-defined strategy that will illustrate the road map.
IB: From a market perspective, are there potential downsides you think companies should be looking out for when considering deals?
Baboujian: Some insurance companies, with smaller volumes, may not be keen with the “new” entity profile, but it’s an obstacle that can be overcome. Potential change in culture, and its impact and consequences, may also be an issue that the vendor must consider.
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