Brown & Brown, Inc. Enters Into Agreement to Acquire Servco Pacific Insurance
DAYTONA BEACH, FL — J. Scott Penny, Chief Acquisitions Officer of Brown & Brown, Inc. (NYSE:BRO), and Mark Fukunaga and Graham Gardner, on behalf of Servco Pacific Insurance (SPI), announced that Brown & Brown, Inc. (Brown & Brown) has entered into an agreement to acquire the Servco Pacific Insurance operations in Hawaii and the Pacific Northwest. The transaction is expected to close in June 2018, subject to certain closing conditions.
The Fukunaga family founded Servco Pacific Inc. (Servco), the parent company of SPI, in 1919. In 1971, Servco established a base for its wholly owned insurance brokerage firm in Hawaii and expanded its operations to the Pacific Northwest in 2010. With annual revenues of $24 million, SPI is a multi-line insurance brokerage firm with multiple offices in Hawaii and the Pacific Northwest, offering a suite of insurance solutions including commercial and personal property & casualty, employee benefits and multiple specialties, including marine, construction and professional liability. The SPI team is dedicated to the “Expert Model” approach in which all team members are experts in the industries they serve. SPI is the second largest insurance brokerage firm in Hawaii and the largest marine insurance broker in the Pacific Northwest.
SPI’s Hawaii operations will become Brown & Brown’s primary retail presence in the Hawaiian Islands, and SPI’s Pacific Northwest operations will merge with Brown & Brown’s existing office in Seattle, under the leadership of Alex Bogaard. The Hawaii operations will be led by Dean Hirahara and Malcolm Tajiri. The marine operation in the Pacific Northwest will continue to be led by Graham Gardner. All SPI operations will report up to John Esposito, Regional President of Brown & Brown.
Powell Brown, chief executive officer of Brown & Brown, stated, “We share a common history with Servco of growing our family businesses into a market leader while building a strong culture that empowers our teammates. Because of our similar DNA, we look forward to continuing the success of the Hawaii team and adding the depth and breadth of experience that will enhance our operations in the Pacific Northwest.”
Mark Fukunaga, chairman and chief executive officer of Servco, stated, “I am proud of our teams and the success we’ve had in Hawaii and the Pacific Northwest and am confident Brown & Brown is the right choice in terms of resources, expertise and values to take Servco Pacific Insurance to the next level.”
Graham Gardner added, “We’re excited to join an industry leader like Brown & Brown that can provide increased support to continue growing our marine practice while giving us the scale to offer the best products and services to our clients.”