Global Risk Partners’ GWP reaches £900m after 18 more acquisitions

Global Risk Partners (GRP), the UK’s second largest independent insurance broker, has unveiled details of a busy year of acquisitions in 2020, which has resulted in its gross written premiums (GWP) increasing by £100 million to reach nearly £900m.

The company completed 18 acquisitions in 2020 compared with 16 in 2019. It reported that its run-rate income grew by 17 percent to £163m, while deal activity pushed overall GWP to nearly £900 million. It also reported a 22 percent increase in run rate EBITDA of £61 million (2019: £50 million).

Mike Bruce, GRP’s Group CEO, said: “These are tremendous results after a hugely challenging year for broking and the wider economy. I want to pay tribute to the resilience and commitment of our people across GRP and the determination they have shown to continue to serve and support our clients through the year. We are in excellent shape to accelerate our growth as the economy emerges from the pandemic in 2021.”

Bruce added: “After the investment from Searchlight Capital Partners in June, we had a clear mandate to continue our buy and build strategy, not only in retail commercial brokers, but in building out the portfolio into new lines and regions, including digital broking (Insync), healthcare insurance (Premier Choice) and the Irish Republic (Crotty).”

Bruce said that the Insync deal in December capped a productive year for the Group’s M&A team, and illustrated that GRP’s acquisition model remains “highly appealing, and noted in particular the role played by GRP’s hubs in “identifying, negotiating and bringing 13 acquisitions over the line out of the 18 in total for the year.”

He said: “We take a long-term view of our investments, especially for businesses where the vendors are young and ambitious, and this focus on the value of long-term growth feeds through to the acquisition strategies of our senior management teams across GRP’s portfolio.

“Our acquisition pipeline remains very strong; we anticipate adding new hubs to our UK footprint shortly, and to completing further deals as vendors see the advantages of being part of a bigger group, especially during the current economic uncertainty, and broking businesses continue to hold attractive valuations.”

Bruce said that, notwithstanding the pandemic, 2020 was a momentous year for GRP, following the majority investment into the business by Searchlight Capital Partners. “Searchlight have been strongly supportive of our business and our strategic direction since coming on board in June, and like me they are excited by the opportunities ahead for GRP in what is still a fragmented market.”

“Notwithstanding Brexit and further Covid-related challenges, our 2020 performance, built on the professionalism of our people and the fruits of our increasing focus on digital capability and data analytics, gives us added confidence that GRP will further accelerate its growth trajectory next year.”