Tampa insurance firm sells wholesale business

BRP Group, a Tampa-based independent insurance firm, says it will sell its wholesale brokerage platform, Connected Risk Solutions, for $59 million to Amwins, an Orlando-based specialty insurance provider.

BRP Group CEO Trevor Baldwin told investors on Wednesday's quarterly earnings call that the sale was made "as a part of our efforts to streamline operations, increase margin and focus on our core businesses," and to "simplify and optimize our operating model and business operations."

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In a joint news release on Thursday about the sale, Baldwin says the sale furthers BRP's efforts to focus on core retail and MGA insurance businesses.

MGA, or managing general agent, business targets unusual lines of coverage, such as professional liability and surplus lines of insurance, "in which specialized expertise is required to underwrite the policies," according to the International Risk Management Institute. 

Connected Risk Solutions also deals with many business clients whose work is not simple.

An "excess and surplus" specialty firm, Connected Risk Solutions tackles complex sectors such as high-tech businesses, health care and managed care — sectors that many insurance carriers do not cover. The Atlanta-based agency has five offices nationally.

Jeff McNatt, president of Amwins Brokerage, says in a Thursday news statement that Connected Risk Solutions will particularly help sell cyber-related and healthcare business.

Baldwin told investors that Amwins is the nation's largest independent wholesale broker and "has been one of our trusted and preferred trading partners for many years and they will be an outstanding home for Connected’s clients and colleagues."

Connected Risk Solutions was formed in January 2020 via BRP Group's acquisition of Highland Risk Services LLC. Amwins will gain approximately 40 Connected Risk Solutions employees, primarily located in Atlanta and Chicago, the firms say.

In earnings news, BRP reported $1.22 billion in revenues, up 19% from 2022 revenues, which were $980.7 million. The company reported a net loss of 2023 of $164 million, as opposed to 2022's net loss of $76.7 million.

For 2024, BRP projected revenues of between $1.35 billion to $1.40 billion, implying up to 15% organic growth.