Agency Draws $395 Million From Broker

U.S. insurance broker Brown & Brown Inc. said it has agreed to buy Arrowhead General Insurance Agency Inc. for $395 million in cash. Brown & Brown said it will buy Arrowhead from Spectrum Equity Investors, JMI Equity and a management equityholder group.

The company said the purchase price is subject to adjustments for certain items such as Arrowhead’s working capital, debt and net tax operating losses. The insurance broker said an additional payment of up to $5 million may be made three years after closing.

“It is expected that this transaction will increase our total annual revenue and number of team members by approximately 10 percent,” Powell Brown, Brown & Brown’s CEO, said in a statement.