Global insurance and reinsurance brokerage, Ed, is to be acquired by a subsidiary of BGC Partners, Inc., a global broker and financial technology firm, subject to numerous conditions, including regulatory approvals.
According to an announcement on the deal, under the terms of the agreement, a BGC subsidiary will acquire 100% of Ed, which includes broking operations under the Ed brand in the UK, Singapore, Hong Kong, Dubai, Miami, and China, as well as its German marine broking arm, Junge, in addition to its MGA operations: Globe Underwriting, Epsilon, and Cooper Gay France.
Shaun Lynn, President of BGC Partners, said: “We are delighted to reach an agreement to purchase Ed, a leading independent Lloyd’s of London broker with a global footprint. It will be an important acquisition with respect to our strategy of building the insurance brokerage division within the Company.
“Since the formation of BGC in 2004, BGC has demonstrated a proven track record of successfully building new brokerage verticals.”
The acquisition sees the expansion of BGC’s insurance division, which was established last year after it acquired Besso Insurance Group Limited, a Lloyd’s of London broker with operations in the UK, Brazil and Dubai.
Group Chief Executive Officer (CEO) of Ed, Steve Hearn, said: “To be able to announce the agreement with BGC is tremendously satisfying, given their ambition and appetite for growth. We feel that the best fit and the strongest future for us is with BGC, one of the leading brokerage firms in the world. With them, we are poised to make the next leap forward to redefine insurance broking.”
According to the announcement, with the addition of Ed’s brokers and back office personnel, Ed and Besso are expected to place roughly $2 billion of premium in 2018, and have approximately 300 combined brokers that operate across 10 countries.