October 20, 2014 by Canadian Underwriter
Aon plc and Marsh Inc. held a combined total of 23% of the world’s commercial non-life insurance broking market in 2013 and the top 150 brokers worldwide accounted for nearly 60% of total commercial property & casualty brokerage revenue, Finaccord Ltd. announced in a recent report.
Finaccord, a London-based market research and consulting firm, released Sunday a report titled Global Insurance Broking: A Strategic Review of the World’s Top 150 Commercial Non-Life Insurance Brokers.
“Finaccord’s analysis indicates that Aon held a market share of 12.5% of the world’s commercial non-life insurance broking market in 2013 and that it was followed by Marsh (10.5%) and Willis (4.2%) with the next seven groups accounting for a combined share of a further 12.7%,” the firm stated.
In the report, Finaccord ranked the top 150 brokers by estimates of commercial non-life broking revenues in 2013.
It excludes revenues from personal lines, employee benefits, wholesale insurance and reinsurance.
The top 150 brokers earned revenues of $28.5 billion, or 58.8% of the worldwide 2013 total of $48.5 billion, Finaccord reported.
London-based Aon was in first place, with revenues of $6.05 billion. All figures are in United States dollars. New York City-based Marsh was second with $5.1 billion while London-based Willis Group Holdings plc ranked third with revenues of $2.05 billion.
The top 15 brokers put together had commercial non-life revenues of $20.9 billion, or 43.1% of the worldwide non-life total, Finaccord said.
Ranked 15th was OAMPS Insurance Brokers, which was acquired in 2014 by Arthur J. Gallagher & Co. of Itasca, Ill. Arthur J. Gallagher ranked fourth with revenues of $1.22 billion. Another brokerage acquired in 2014 by Arthur J. Gallagher was Noraxis Capital Corp., which has operations in Alberta, Manitoba, New Brunswick, Nova Scotia and Ontario.
Noraxis was one of eight brokerages based in Canada that made the top 150 by 2013 commercial non-life revenue.
Another was EssOR Assurances, which has offices in Quebec. EssOR — along with Pratte Morrissette Inc. and Assuraction Inc — announced Oct. 15 they had signed an agreement in principle to form a new entity called EGR. The other six brokerages based in Canada that made the top 150 were: Montreal-based BFL Canada, led by CEO Barry F. Lorenzetti; BrokerLink, a subsidiary of Intact Financial Corp.; Dalton Timmis Insurance Group Inc., which has three offices in Ontario (Ancaster, Burlington and Midland) and one in Calgary; Montreal-based Dale Parizeau Morris MacKenzie Inc.; InsureBC (formerly known as The Intercity Group), which has offices in British Columbia and The Netherlands and also owns Vista International Insurance Brokers of Petaluma, Calif.; and High River, Alta.-based Western Financial Group Inc., which has more than 160 brokerage offices in B.C., Alberta, Saskatchewan and Manitoba.
Hub International Ltd. ranked 7th worldwide, with estimated commercial non-life revenues of $932 million. Formed in 1998 through the merger of 11 Canadian brokerages, Hub is now based in Chicago and owned by Hellman & Friedman LLC.
“The global ranking may see some important changes in future if competitors such as Arthur J. Gallagher & Co., HUB International and Towergate continue purchasing other brokers at such a rapid pace,” stated Finaccord consultant Bernd Bergmann in a release.
“In particular, given some of the acquisitions announced recently by Arthur J. Gallagher & Co., which include Noraxis Corporation in Canada and The Oval Group in the UK as well as OAMPS Insurance Brokers, the US-based brokerage may substantially shorten the gap to Willis which is currently ranked third.”
Toronto-based Onex Corp. owns the Valhalla, N.Y.-based brokerage — USI Insurance Services LLC — that placed 11th. Finaccord estimates USI had commercial non-life revenues of $390.4 million in 2013.
“The strong presence of North American brokers in the ranking is primarily due to the huge size of the US and Canadian commercial property and casualty markets and the fact that brokers (including independent agents) dominate distribution in both the US and Canada”, Bergmann stated. “In addition, a number of large brokers in North America are driving their growth through acquisitions while the majority of their counterparts in Europe rely more on organic growth.”