BRP Group, Inc., an independent insurance distribution firm delivering tailored insurance solutions announced that the Company has entered into an agreement to acquire all of the outstanding equity interests of Westwood Insurance Agency (“Westwood”). Based in West Hills, CA, and owned by QBE Holdings, Inc. (together with its affiliates, including QBE Insurance Company, “QBE”), Westwood is a leading, full-service personal lines agency specializing in builder-sourced homeowners insurance. Westwood has established itself as a premier partner with some of the largest homebuilders in the United States, providing homeowners insurance solutions embedded in the home purchasing experience. With annual revenues of approximately $81.8 million1, Westwood represents BRP Group’s largest Partnership to date. The Partnership, BRP Group’s nomenclature for a strategic acquisition, is expected to close on or around May 1, 2022, subject to certain closing conditions
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Separate from the purchase of Westwood, Millennial Specialty Insurance, LLC (“MSI”), BRP Group’s “MGA of the Future” platform, has entered into a Program Administrator Agreement with a QBE affiliate to assume operations of QBE’s builder-sourced homeowners book, which is expected to add $200 million3 of premium to MSI’s homeowners MGA platform. Per the agreement, MSI will assume all MGA functions associated with the book of business, for which QBE will provide balance sheet capacity for a period of 5 years. MSI will not assume any balance sheet risk associated with the book of business.
Westwood has distinguished itself as a leading tech-enabled, personal lines agency with a focus on builder-sourced homeowners insurance. Westwood simplifies the purchase of homeowners insurance at the time of sale with 90-second ‘click-to-bind’ policy issuance3, positioning Westwood as the partner of choice for top builders and insurance carriers in the U.S. The Partnership, which brings approximately 164 colleagues, significantly enhances BRP Group’s expertise and capabilities in tech-enabled homeowners insurance products.
“Alan and his team at Westwood have built a world-class organization, and we could not be more excited to be Partnering together,” said Trevor Baldwin, Chief Executive Officer of BRP Group. “Representing the largest Partnership to date in BRP Group’s history, Westwood’s embedded business model and proprietary technology add invaluable expertise to the BRP Group family. We welcome Alan and the entire Westwood team to BRP Group.”
“We know, first-hand, what a unique and strategic asset Westwood represents, and we are thrilled to partner with the Westwood team,” said Jim Roche, Chief Insurance Innovation Officer of BRP Group, who prior to founding MSI, spent four years leading strategy for QBE North America Personal Lines, which included involvement in the strategic direction of Westwood. “We believe there is a tremendous opportunity to leverage our collective relationships, proprietary technology and product offerings for future growth.”
“This opportunity could not have come at a better time as Westwood celebrates our 70th anniversary this year. I’m truly excited to join the BRP Group family and for this new chapter in Westwood’s history,” said Alan Umaly, President of Westwood.
Todd Jones, Chief Executive Officer of QBE North America, remarked, “A really pleasing outcome for all parties involved – especially the Westwood Insurance Agency team. The process gives us confidence that this is the beginning of an encouraging partnership with BRP Group.”
Morgan Stanley & Co. LLC acted as exclusive financial advisor to QBE in the transaction.