In connection with a strategy to exit the reinsurance brokerage space, insurance intermediary Brown & Brown, Inc. said it is selling certain assets of subsidiary Axiom Re LP to Beach Re Limited on Wednesday.
Axiom Re is a reinsurance brokerage operation based in North Carolina producing roughly $7 million of annual revenues.
Both sides have agreed that Brown & Brown will assist Beach with transition of teammates, payroll, benefits administration and other post-closing operational matters.
Brown & Brown first acquired Axiom Re in 2006 with a focus on middle-market reinsurance placements. Brown & Brown will continue to utilize Axiom Re for modeling services and has entered into a relationship with Beach for the delivery of reinsurance solutions for current and prospective Brown & Brown customers.
The former Axiom Re team will continue to operate in North Carolina under Mike Cross’s leadership, and will be part of Beach’s North American operations.
Brown & Brown expects the transaction to result in a one-time, after-tax earnings per share loss of approximately 22 cents in 2014.
Brown & Brown also said that its Evergreen Re and Beecher Carlson’s managed care operations will be merging to create expanded managed care capabilities, which will operate under the name of Beecher Evergreen Managed Care.
In November, Jeff Greenberg’s Aquiline Capital Partners announced that it took a majority stake in Beach & Associates, with Greenberg saying the investment would help the reinsurance intermediary headed by former Willis executive, Grahame Millwater, develop and expand in the current market.
Source: Brown & Brown