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Mergers and acquisitions (M&A) are hot right now. In the past two weeks we’ve seen Marsh & McLennan Companies snap up Jardine Lloyd Thompson Group (JLT), and American International Group (AIG) acquiring Glatfelter Insurance Group.
Consolidation has a number of key drivers. Some might be tempted by a strong book of business, while others seek territorial dominance. For managing general agent and wholesale brokerage Arlington/Roe, M&A activity is all about acquiring “good talent.”
“We’re finding that there’s really good talent in the excess & surplus (E&S) market. When a talented broker or underwriter has been with a company for a number of years and that firm suddenly gets acquired by somebody else, they might not be as enthralled working with a national wholesaler or huge corporation as they were when working for a smaller, privately-owned business,” said Andy Roe, executive vice president at Arlington/Roe.
“That puts Arlington/Roe in a good spot because we are and intend to remain a private, family-owned business and a lot of people enjoy working in our culture. Our growth strategy for the most part is all about acquiring talent as opposed to acquiring companies or books of business. We see tremendous opportunity in investing in talented individuals who want to work for a privately-owned organization.”
Growth by talent acquisition is exciting … if you can find the talent. It’s no secret that the insurance workforce is aging, with many nearing retirement. On top of that, the industry has struggled to initiate a recruitment strategy that really connects with millennials and younger generations. Where do you find the next super broker? That’s the real challenge for anyone focused on people acquisition, Roe explained.
“2018 has been a good year for Arlington/Roe, especially in our commercial brokerage division. We want to grow so that we can continue to serve our retailer and carrier partners as the dominant regional wholesaler in the Midwest,” Roe added. “We’re on track with good growth this year, and want to continue with that momentum. We’re very bullish in our goals for the future and we’re excited for what’s to come. There’s a lot of capacity in the E&S market and we have a lot of opportunities to write business, especially in specialty lines including manufacturing, cyber, cannabis and environmental lines. Pouncing on opportunities and winning business with talent is a key focus moving forward.”
Dive deeper into this issue at Millennials in Insurance Masterclass Chicago on November 14. For more information and to register, click here.
