Irish brokers have been in consistent high demand, especially in recent years. This sector is now one of the hottest sectors from the M&A perspective. In fact, multiple brokers were acquired by various private equity owners that are looking to get a better ROI.
LHK Group has already acquired The Insurance Shop and Richardson Insurance Solutions for an undisclosed sum. Then we have the Arachas company (Irish for insurance), which was acquired in 2020 by Ardonagh.
PIB Group, which is a widely known UK based insurance intermediary already acquired 3 different Irish brokerages, such as Campion Insurance. We also have ASTON Lark backed by Goldman Sachs which has purchased Deanspoint Insurance Brokers. This shows just how in demand insurance brokers are throughout Ireland.
Irish brokers that can fully personalize the experience through technology for their clients are getting higher acquisition multiples.
Why does this happen? The truth is that insurance is a very lucrative sector and it continues to generate sales even in times of economic downturn. We can take the pandemic as example, Irish brokers were still able to generate consistent revenue because homes and businesses still had to renew policies or even create new ones as well. Because of that, the private equity investors see these companies as something similar to an annuity business.
