Howden is in “advanced talks” to buy TigerRisk Partners, a source has told Intelligent Insurer. The move would form a brokerage of a size equal to large rivals, such as the combination formed in 2019 from Aon’s reinsurance unit and Guy Carpenter/JLT Re, the source said.
The source added that the two firms were in “advanced talks” but nothing had been signed yet.
The source also stressed that such a merger and acquisition (M&A) would face a stringent regulatory approval process. The $30 billion proposed merger between Aon and Willis Towers Watson, which would have created the world's largest insurance broker, had collapsed, the source noted.
“There are still many reasons the deal might not go ahead,” the source said. “But in theory you can also see why this could be a strategic fit for both firms.”
TigerRisk was formed in 2008 by Rod Fox and Jim Stanard. It is now located in five countries, including Bermuda. It has gone through a number of changes in the recent past, including a reshuffle of its executive team and sale of a portion of business to private equity firm Flexpoint Ford in April 2020. In October last year, Howden purchased Foram Brokerage, an independent re/insurance broker based in Hamilton.
TigerRisk also launched its Markets and Advisory Group in 2015, which focuses on insurance and reinsurance-focused investment banking and forms of risk transfer including insurance-linked securities, all forms of cat bonds and sidecars, capital raising and M&A advice.
Howden says it is the largest independently-owned international retail insurance broker in the world. Its biggest acquisition to date was Aston Lark, which created a UK business managing over £6 billion of gross written premium with more than 5,000 employees. Its acquisition of A-Plan, the parent of broker Endsleigh, earlier last year created a combined entity managing £4 billion in gross written premiums.