Brown & Brown–Davies Deal: Four TPA Businesses and Terms

The Brown & Brown and Davies TPA sale was a 2023–2024 transaction in which Brown & Brown, Inc. sold four of its third-party claims administration businesses to UK-based Davies Group Ltd. for an expected $185 million to $205 million. The deal moved roughly $100 million in annual revenue and more than 600 employees to Davies, and it set up a long-term arrangement under which Davies would continue providing claims services to Brown & Brown.¹

The Four Businesses That Changed Hands

Brown & Brown grouped the sold units under the label “TPA Operations,” part of its former Services segment. They were:

American Claims Management (ACM), a third-party claims administrator.
Preferred Governmental Claims Services (PGCS), a claims manager focused on Florida governmental and municipal agencies.
USIS, a provider of managed care services and third-party administration for workers’ compensation and liability claims.
ICA, an independent property adjusting firm.

Together the four represented about 3% of Brown & Brown’s total revenue, 2% of its total assets, and 2% of its net income. Brown & Brown considered whether the units qualified as discontinued operations and decided they did not, given their small share of the overall company.²

Price, Timing, and the Ongoing Partnership

Brown & Brown announced the agreement on October 31, 2023, and initially expected the sale to close in December 2023.³ The deal was subject to unspecified closing conditions.⁴ Davies’ North American site later listed April 2, 2024, as the date the deal was formally signed, indicating the close ran past the original December target.⁵

Proceeds to Brown & Brown were expected to fall between $185 million and $205 million.¹ Alongside the cash, the two firms agreed a long-term commercial relationship: Davies would deliver outsourced claims and related services to Brown & Brown, so the brokerage kept access to the capabilities it was letting go of internally.⁶

Why Brown & Brown Sold

Brown & Brown presented the sale as a way to concentrate on its core brokerage and programs operations. Chris Walker, president of the company’s National Programs segment, said Davies was “best positioned to invest the necessary resources to grow these TPA businesses,” citing technology upgrades and employee training.⁴ The brokerage chose to keep claims capabilities through the new Davies relationship rather than exit the space entirely.⁷

The transaction also reshaped how Brown & Brown reports its business. Starting in fiscal year 2024, the company moved from four reportable segments to three, keeping Retail, Programs, and Wholesale, and folding what remained of the former Services segment into Retail.²

What Davies Gained

For Davies, the acquisition expanded its North American footprint. The four businesses added dedicated medical claims management and governmental third-party claims solutions to its existing lines in property and workers’ compensation claims, catastrophic loss adjusting, and professional liability claims management.⁸ More than 600 Brown & Brown employees moved to Davies, and Davies committed to continued investment in their training and development.⁹

Dhara Patel, who had led Brown & Brown’s Services segment as its president, transferred with the businesses. She initially joined Davies to continue running the acquired units and reported to Matt Button, then CEO of Davies North America.⁶

Who Davies Is

Davies is a professional services and technology firm serving insurance, financial services, and other regulated industries, with more than 8,500 employees across 20-plus countries and major operations in the UK and the US.¹⁰¹¹¹²¹³

1
Reinsurance News. Brown and Brown to Sell Four TPA Businesses to Davies Group
2
SEC.gov. Brown and Brown Inc. 2024 Annual Report
3
Yahoo Finance. Brown and Brown Inc. Announces Sale of Certain Third Party Administrator Businesses
4
Brown & Brown Investor Relations. Brown and Brown Inc. Announces Sale of Certain Third Party Administer Businesses
5
Davies Group North America. Davies Inks Deal With Brown and Brown
6
Insurance Business Magazine. Davies Inks Acquisition Deal With Brown and Brown
7
RV Business. Brown and Brown Sells Four TPA Units to Davies Group
8
Davies Group. Davies Inks Deal With Brown and Brown
9
ACM Claims. ACM Has Joined Davies
10
Davies Group. About Us
11
BC Partners. BC Partners Invests in Davies to Support Global Expansion and Digital Transformation
12
Davies Group. Davies Expands Its North American Offering Through the Acquisition of Afirm
13
Davies Group. Davies Boosts Liability Claims Offering for the Lloyds Market in North America With Acquisition of Premier Claims Management