AMBest list of top 20 global insurance brokers
AM Best’s Review in July 2019 released the 2019 edition of its list of the top 20 global insurance brokers, with Marsh & McLennan Companies leading the pack. The list ranks global insurance brokers by total yearly revenue.
With $14.95 billion in total revenue, Marsh & McLennan (MMC) maintained the lead it held in 2017 thanks to the acquisition of Jardine Lloyd Thompson (JLT) in September 2018 for $5.6 billion.
Pervasive External Growth in 2018
MMC invested an additional $1.1 billion of capital in 23 transactions, including Wortham Insurance, Pavilion Financial and Summit Strategies. It also added seven agencies; launched Bluestream, a digital broking platform for the affinity market; and Guy Carpenter’s GC Genesis, a proprietary advisory offering on insurtech.
Gallagher completed 48 acquisitions for additional revenues of $340 million, while Hub, BB&T, Brown & Brown, and JLT also made significant acquisitions, along with Assured Partners, Hyperion Insurance Group, the Ardonagh Group, and Epic Insurance Brokers.
USA and the UK dominate
All 20 global brokers are based either in the USA or in the UK. Continental Europe and Asia exhibit a very fragmented distribution landscape. It is only a matter of time before expansion of the former into the latter’s territories begins. However, the tied agent model is a significant factor in many of these markets and is not susceptible to acquisitions – but certainly to competition.
The top four global brokers, MMC, Aon, WTW, and Gallagher are truly global organizations, as are JLT and Lockton. Hub International only covers the USA and Canada, and the other firms are predominantly domestic.