Brown & Brown, Inc. (NYSE: BRO) experienced a positive share movement following its announcement of a strategic asset acquisition within its specialty insurance business. The Bridge Specialty Group, a division operating under Brown & Brown, declared it has secured the assets of Shoemaker & Besser Associates, Inc., an established managing general agency headquartered in York, Pennsylvania.
The acquired entity, Shoemaker & Besser, boasts a long history dating back to 1959. It has earned a reputation for providing specialty personal insurance and niche commercial insurance products through independent agent channels. The company's expertise in these focused lines of coverage complements Brown & Brown’s existing specialty offerings.
Post-acquisition, the Shoemaker & Besser team will maintain its operational base in York, continuing to serve its market without disruption. Their management will report directly to Jason Haupt, who serves as the regional president overseeing the Mid-Atlantic and Delta regions for Bridge Specialty Group. This organizational alignment is expected to facilitate integration and optimize operational synergies.
Brown & Brown’s specialty unit plans to exploit Shoemaker & Besser’s proprietary automation technologies and access to diverse insurance products. The intention is to enhance the value proposition for retail brokers by introducing strengthened and more efficient specialty insurance solutions.
Anurag Batta, president of Bridge Specialty Group, highlighted that the addition of Shoemaker & Besser’s team brings complementary capabilities that will expand Brown & Brown’s capacity to provide contract binding and light brokerage services. This integration aims to broaden the range of solutions available to clients, reinforcing the group's market competitiveness in specialty insurance sectors.
From the sellers’ perspective, Shoemaker & Besser's owners, Jack Brubaker and L. Allan Boyd, expressed confidence that the combination with Brown & Brown will increase market access opportunities. They emphasized the importance of maintaining the personalized service approach that has characterized Shoemaker & Besser, ensuring clients continue to receive tailored support despite the ownership change.
The acquisition is structured as an asset purchase, which enriches Brown & Brown’s specialty unit with deeper resources and capabilities. This strategic move supports the company's objective of competing effectively for niche personal and business insurance coverage relationships, broadening its footprint in specialty insurance markets.
Following the announcement, Brown & Brown's shares recorded an uptick, rising 2.55% to trade at $80.82 as of Thursday's publication. This positive market reaction reflects investor confidence in the acquisition's potential to drive growth and enhance the company’s specialty insurance segment.
While the details shared provide insight into the operational and strategic impact of the acquisition, further information on integration timelines, financial terms, or specific revenue expectations from the deal has not been disclosed. The continued focus will be on leveraging the combined strengths of both organizations to deliver enhanced insurance solutions to retail brokers and their clients.
Overall, this development underscores Brown & Brown’s ongoing commitment to expanding and strengthening its specialty insurance operations by incorporating companies with aligned expertise and capabilities. The integration of Shoemaker & Besser’s resources and technologies is set to fortify Brown & Brown’s position in the competitive specialty insurance market.