BrokerLink aims to increase direct premiums written (DPW) by more than $1 billion over the next 18 months.
In 2023, BrokerLink's DPW exceeded $3.5 billion.
“Our goal is to be $5 billion by the end of 2025,” said President Joe D'Annunzio. canadian insurance company. “We are on track to achieve our goals and will continue to work towards achieving them.”
Mr. D'Annunzio was discussing BrokerLink's latest transaction, the future of the brokerage, and how the current interest rate environment impacts M&A.
BrokerLink has already closed four deals this year, following a total of 20 acquisitions in 2023.
In March, BrokerLink acquired Owen Sound, Ont.-based Hanbidge & Bowman Ltd. Insurance Professionals.
Last week, the company announced the acquisition of two other Ontario brokerages, M. Edward Powell Insurance Brokers in Oakville and Russ Bastow Insurance Brokers in Ajax. It also acquired the personal and small business commercial insurance book of business from Ottawa-based Halpenny Insurance Brokers.
D'Annunzio said the deal with Halpenny was atypical in that BrokerLink typically acquires brokerages outright, but he knew the brokerage's principals and the deal fit with BrokerLink's track record. .
“They decided on a strategy to focus on the mid-market commercial line as an intermediary, rather than the small business or consumer line. Line and books for small businesses,” says D'Annunzio. “They continue to operate on the mid-market commercial side under Halpenny.”
D'Annunzio said all three recent transactions involved quality intermediaries within the community. “So these are a great fit for us and we’re going to continue to expand,” he says. “We have a strong pipeline and are very excited to see what 2024 brings.”
Mr. D'Annunzio also discussed how the current interest rate environment impacts M&A.
Although he can't speak for the private equity-backed company, he said this is a status quo approach for BrokerLink, which is owned by Intact Financial Corp.
“Our growth strategy is working on many fronts as we are in a strong financial position and have excess capital to deploy,” he says. “Even when [interest rates] It's gone up in the last two years and now what's going on…for us, we'd say it's active.
“Whether it's low interest rates or high interest rates, we're going to continue to be as disciplined as we've always been. It's not hurting us.”
Similarly, interest rates do not change BrokerLink's approach to negotiating the financial terms of transactions.
“We are flexible when acquiring brokers,” he says. “When we deal with that broker, we're always flexible in terms of what his terms are and what he wants out of the acquisition. In terms of capital injection, it's business as usual. ”
D'Annunzio says sticking to this model has led to successful and profitable growth.
“We talk and strengthen that relationship, sometimes over two or three years. It's about making sure it's profitable and making sure we recruit and retain employees and talent.
“We have a recipe that has worked for many years and has brought us success,” D'Annunzio says. “As long as we stay focused, interest rates and market conditions won’t change that…”
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