"Bold move" for GRP as it buys Marsh's UK Networks business

Global Risk Partners (GRP) has agreed to buy Marsh’s UK Networks business, including Marsh ProBroker, Bluefin Network and Purple Partnership.

Terms of the transaction, which is subject to regulatory approval, were not disclosed but completion is expected by the second quarter of 2021.

Mike Bruce, GRP’s Group CEO, hailed the transaction as “a great leap forward for GRP”, highlighting that the group now places or influences over £1.6bn of gross written premium.

GRP detailed that the acquisition also includes Marsh Connections, Marsh Labyrinth and Broker2Broker (B2B), part of Marsh’s wider UK networks business, which it said provide brokers with access to a range of products and facilities. The networks have 256 members in total.

The move follows Searchlight Capital Partners’ purchase of GRP, which was completed last June.

Team
Bruce explained that, on completion, Marsh’s UK Networks team will move across to GRP.

David Hopwood, head of the UK Networks business, will join the GRP executive team and continue to head up the business under new ownership.

It was announced in January 2020 that Marsh Commercial was set to combine its three broker networks into a single proposition. GRP confirmed that this transformation is still set to go ahead and that the networks business, following completion, will rebrand as Hedron.

Bruce detailed: “This is a growth story. There won’t be any redundancies. Instead, we want to increase penetration of the Marsh Networks panel, build out the membership base, engage with our strategic insurer partners for the benefit of members and bring new products and services to the network - including through our MGA and healthcare businesses.”

M&A
He explained that an important part of the GRP proposition will be to offer M&A facilities to network members wishing to sell up.

Bruce continued: “GRP has a highly experienced acquisitions team and we are keen to provide that service to brokers looking to create value from their life’s work.

“With some brokers looking for an exit in light of potential tax changes, the impact of Brexit and further compliance challenges, we are here to help.”

He added that he has previously worked with Hopwood while both were at Bluefin.

“David and I go back many years and I’m a big admirer of what he has achieved to date at Marsh and previously at Bluefin,” Bruce stated.

“He and his team will be a key asset for GRP and we intend to continue the work he has started, building a single brand and proposition for the Network.”

He added: “We look forward to warmly welcoming Marsh’s UK Networks colleagues to GRP where we believe we will be able to provide them with new and interesting career opportunities under GRP’s ownership.”

Growth
Hopwood commented: “We are very excited to be taking our members on this next step, where we believe we can capitalise on our firm foundations to generate accelerated growth and success for our 256 members and around 400 trading partners.”

As part of the transaction, some staff in Marsh Commercial’s London Markets Business (LMB) team, led by Bob Peterson, will also transfer to GRP.

Peterson will continue to lead the team which will become part of Lonmar, GRP’s Lloyd’s and London markets division.

GRP detailed that the LMB’s Placement team, which supports Marsh Commercial’s branches, will remain with Marsh.

Custodian
Commenting on the transaction, Chris Lay, CEO of Marsh, UK & Ireland, said: “I am pleased that GRP is to become the new custodian for our UK Networks business.

“Mike Bruce and his team understand the broking business and market environment our members operate in and will ensure that our Networks colleagues and the Network members can continue to thrive.”

He continued: “We have a very strong position in the SME segment, and we are excited about the organic growth opportunities in our Marsh Commercial business.

“This transaction will enable us to increase our investment and focus on the core Marsh Commercial offering to the UK SME market.”

Andrew Frey, partner at Searchlight Capital Partners, said: “This is just the kind of bold move we expected when we invested in GRP. The addition of Marsh’s UK Networks business to GRP’s business portfolio will enable their members to derive the considerable benefits that come with being part of our Group.

“I am confident that all parties will achieve significant value from this acquisition.”

GRP recently bought Birmingham-headquartered Newstead Insurance Brokers and Poole-based Insync Insurance Solutions.

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