US retailer Brown & Brown is in the midst of a major review of the wholesalers it uses to place more than $1.5bn of premium into London, Insurance Insider can reveal.
Sources said the broker is aiming to rationalise its London placements, currently divided among dozens of wholesalers – with Howden’s sizeable share in particular focus following the challenger broker’s foray into US retail.
Brown & Brown is understood to be agnostic around the size of its wholesale counterparts, aiming mainly to ensure that business is placed with brokers with the right expertise for particular clients, as well as striving for greater efficiency.
Its own London wholesale operation, Bridge Specialty Group, mainly deals with business from third-party international retailers. It is understood that this is not expected to change radically as a result of the review.
While Brown & Brown’s exercise predates Howden’s expansion in US retail, sources said Howden’s share of the Brown & Brown book – one of the largest – is naturally in focus given potential new conflicts with Brown & Brown’s retail operations.
Howden launched its US retail play in July with a 140-head team lift from Marsh.
The move triggered immediate retaliation from US retail clients of Howden’s London wholesale operation.
Within weeks, Marsh moved to divert as much as possible of its ~$700mn specialty business placed with Howden to alternative wholesale partners.
Alliant soon followed with a plan to move as much as it could of its ~$1bn premium Howden book to rival brokers.
Brown & Brown last year began consolidating its own London-based wholesale operations into Bridge Specialty Group, rebranding Lonmar, acquired through Global Risk Partners, as Bridge Specialty International.
Binders broker Decus and Lloyd’s intermediary BdB are scheduled to merge into Bridge Specialty Group this year.
Howden and Brown & Brown declined to comment.
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