Marsh McLennan to Buy TIH’s McGriff Insurance for $7.75B

Marsh McLennan says it has a deal in place to acquire McGriff Insurance Services for $7.75 billion, funded by cash and debt financing.

U.S. retail broker McGriff, an affiliate of private-equity backed TIH (formerly Truist Insurance Holdings), had $1.3 billion of revenue for the twelve months ending June 30. According to the agreement, Marsh McLennan, through its Marsh McLennan Agency business, also will assume a deferred tax asset valued at about $500 million.

The deal adds to Marsh McLennan’s position as the biggest U.S. broker, with $22.7 billion in revenue in 2023, according to AM Best.

After closing, McGriff’s team of 3,500 or so employees, as well as CEO Read Davis, will join Marsh McLennan Agency and operate from existing locations. The transaction is expected to close by the end of the year, pending regulatory approvals.

Charlotte, North Carolina-based McGriff, founded in 1886, specializes in commercial property/casualty—including small business, cyber, and management liability—surety, employee benefits, alternative risk transfer programs, and personal lines insurance to businesses and individuals in the U.S.

In May, Truist Financial Corporation completed a sale of its remaining stake in TIH, the 10th largest insurance brokerage in the U.S. with $3.46 billion in 2023 revenue, to an investor group led by private equity firms Stone Point Capital and Clayton, Dubilier & Rice. TIH insurance units now include CRC Insurance Services, Crump Life Insurance Services, and AmRisc.

With the sale, TIH announced the formation of a board of directors that included Dan Glaser, former CEO of Marsh McLennan and operating partner at CD&R, as chairman. Richard R. Whitt, former co-CEO of Markel Group, Julio Portalatin, former CEO of Mercer, and Ross Buchmueller, former CEO of PURE Insurance, serve as independent directors.

Topics Mergers & Acquisitions