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TAMPA — Insurance giant Brown & Brown, with dual headquarters in Tampa and Daytona Beach, will exit the reinsurance brokerage market with the sale of a North Carolina subsidiary.
Brown & Brown, according to a Jan. 1 statement, sold Axiom Re, a Burlington-N.C.-based reinsurance brokerage operation with around $7 million in annual revenues, to Toronto-based Beach Re Limited. Terms of the deal weren't disclosed, but Brown & Brown says the transaction will result in a one-time, after-tax earnings per share loss of approximately $0.22 in 2014.
Brown & Brown, according to the statement, first acquired Axiom Re in 2006 with a focus on middle-market reinsurance placements. Brown & Brown, the release adds, will continue to utilize Axiom Re for modeling services, but the sale is “part of a business strategy to exit the reinsurance brokerage space."
Brown & Brown, the sixth-largest independent insurance intermediary in the country, based on Business Insurance magazine rankings, offers a broad range of insurance products and related services.
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