US insurance brokerage Arthur J Gallagher has bought Wexford-based broker Doyle Mahon Insurances, its first deal since entering the Irish market with the acquisition of brokerage group Innovu in the summer.
While terms of the deal were not disclosed, the acquisition of the Ardcavan-based commercial and agricultural insurance broker will add about €10 million worth of gross written premium, along with some 4,000 clients and 20 staff, Gallagher Ireland chief executive Ronan Foley told The Irish Times on Thursday.
The group of brokerages, which will formally rebrand as Gallagher from Innovu next week, will now have gross written premiums of €70 million, Mr Foley said, and 140 staff.
In a statement, Doyle Mahon Insurances founder Colm Mahon said he and his business partner Pat Doyle were “thrilled to become part of Gallagher’s ambitious growth plans”.
“It is business as usual for our customers and they will continue to be supported by our excellent team in Wexford, however, by becoming part of a global business, we can further enhance our service and product offering,” Mr Mahon said.
The deal follows several years of unprecedented consolidation within the Irish market, which continues to attract private equity investment. Innovu, backed by MML, had been among the main driving forces behind this trend, snapping up five independent Irish brokers – most recently Cullen Insurances and Wexford-based PE Kelly Insurances in October last year.
Before itself being acquired by Gallagher in June, Innovu had also inked deals for Sheridan Insurances, Wexford Insurances, and Goggin Insurance Brokers.
Last month, Matt Pawley, president of New York-based insurance broker NFP’s European operation, said he believed that the “very hot” Irish market would begin to slow down amid rising interest rates and a changing macroeconomic environment.
“Volumes and prices will come down a bit. It just has to,” he said. “It’s simple economics.”
However, Mr Foley said on Thursday that he does not agree with that assessment.
“What I’m experiencing and in terms of our ambitious growth plans over the coming 18 months, I would see plenty of pace left in the market,” he said.
“Particularly with Gallagher now in the market. It’s their first time – as one of the world’s biggest insurance brokers – being in the Irish market, so we have an added appetite to acquire the right-sized business, the right ‘culture fit’ business. So I can see there still being quite a bit of activity left in terms of consolidation.”
