Accession Risk Management Group, the parent company of Risk Strategies and One80 Intermediaries, has recently secured $1 billion in incremental debt financing and refinancing to bolster its growth aspirations. This significant funding sum consists of a $900 million delayed draw term loan and a $100 million increase to its revolving line of credit, facilitated by Golub Capital. The company, which ranks as the ninth-largest privately-held insurance broker in North America, aims to use this influx of capital to support both its acquisition and organic expansion strategies. Given its remarkable record last year, including 32 acquisitions and a 25% increase in year-over-year revenue to $1.5 billion, Accession is well-positioned to make substantial investments in technology and operational infrastructure. This move is part of an overarching goal to become a workplace destination for top-tier talent, further enhancing its market competitiveness.
Expanding North American Market Share
Under the guidance of a seasoned management team, Accession Risk Management has been able to achieve impressive milestones, setting the stage for future growth. One of the key areas where the new $1 billion funding is expected to make a significant impact is in expanding its North American market share. The company’s robust performance last year, underscored by a remarkable 25% increase in revenue, has created a sturdy foundation upon which it can build. The additional capital will allow Accession to continue its aggressive strategy of acquisitions, thereby consolidating its position as a major player in the insurance brokerage industry. John Mina, Global CEO, has emphasized the company’s innovative approach to risk management and brokerage, which is designed to provide clients with advanced insights and maintain a competitive edge amid evolving market dynamics.
Crucially, this funding will enable Accession to make the necessary technological and operational investments to scale efficiently and effectively. By improving its technological capabilities, the company aims to streamline its operations, resulting in better service for clients and enhanced operational efficiency. This not only increases customer satisfaction but also attracts top-tier talent by offering a dynamic, technologically advanced work environment. The $1 billion funding is a vital component of Accession’s strategy to leverage its existing strengths while positioning itself to explore new opportunities within the North American market. Sharon Edwards, CFO, has reiterated the company’s focus on value creation for clients, team members, and shareholders, highlighting that the new financing will be instrumental in achieving these objectives.
Exploring International Expansion
As part of its long-term growth strategy, Accession is looking beyond the North American market to explore potential international expansion. The additional $1 billion in funding will give the company the financial flexibility it needs to pursue these global opportunities through acquisitions or organic growth. The global insurance market is extensive and varied, offering numerous opportunities for a well-capitalized, strategically focused player like Accession. The company’s success in North America serves as proof that similar strategies can succeed in new markets abroad. With strong management and a proven track record, Accession is well equipped to navigate the complexities of international markets.
Investments in technology and operational infrastructure are crucial for this international expansion. By leveraging advanced technology, Accession aims to offer tailored solutions that meet the specific needs of diverse global markets. Attracting and retaining top global talent will also be essential to implementing its expansion strategies effectively. The $1 billion funding enables these investments, strengthening its competitive edge on a global scale. With robust finances and a clear vision for future growth, Accession Risk Management is well positioned to significantly impact the global insurance brokerage landscape.
