(Reuters) -Insurance broker Brown & Brown (NYSE:BRO) will buy Risk Strategies parent and rival Accession Risk Management in a $9.83 billion deal, the companies announced on Tuesday, bolstering its capabilities in property and casualty and employee benefits. The deal adds to a handful of mega transactions in the highly fragmented insurance broker industry in recent years, as top firms look to increase scale and boost their competitive position. Last year, Aon (NYSE:AON) acquired NFP for $13 billion, while Marsh McLennan (NYSE:MMC) bought McGriff Insurance Services for $7.75 billion. Arthur J. Gallagher’s $13.45 billion deal for AssuredPartners is expected to close later this year. Shares of Brown & Brown were down 4.5% in premarket trading. Risk Strategies was founded in 1997 by insurance industry veteran Mike Christian. Boston, Massachusetts-based Accession was formed in 2023 to house Risk Strategies and insurance wholesaler One80 Intermediaries. In 2024, Accession posted pro forma revenue of $1.7 billion and placed $15.7 billion in premiums. The group has more than 5,000 insurance professionals throughout the U.S. and Canada. The deal, anticipated to close in the third quarter of 2025, is estimated to boost Brown & Brown’s 2024 adjusted profit per share by mid-teens. The Florida-based company will combine its programs and wholesale brokerage segments into a new specialty distribution segment. BofA Securities, J.P. Morgan Securities and Skadden, Arps, Slate, Meagher & Flom advised Brown & Brown on the transaction.

Investing.com -- Insurance brokerage firm Brown & Brown (NYSE:BRO) on Tuesday announced its plans to acquire Accession Risk Management, the parent company of Risk Strategies, in a transaction valued at $9.83 billion. This acquisition is the latest in a series of significant transactions within the insurance broker industry, which is known for its high degree of fragmentation. Leading firms in the sector have been seeking to increase their scale and enhance their competitive stance through such strategic deals. The transaction between Brown & Brown and Accession Risk Management is set to be finalized in the third quarter of 2025. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. Should you invest $2,000 in BRO right now? With BRO making headlines, savvy investors are asking: Is it truly valued fairly? In a market full of overpriced darlings, identifying true value can be challenging. InvestingPro's advanced AI algorithms have analyzed BRO alongside thousands of other stocks to uncover hidden gems. These undervalued stocks, potentially including BRO, could offer substantial returns as the market corrects. In 2024 alone, our AI identified several undervalued stocks that later surged by 30 or more. Is BRO poised for similar growth? Don't miss the opportunity to find out.