---
title: "Insurance Mergers: Changing the Commercial Market"
description: "Insurance Mergers: Changing the Commercial Market"
---

[PL Risk Blog](https://blog.plrisk.com)

# [Insurance Mergers: Changing the Commercial Market](https://blog.plrisk.com/blog/insurance-mergers-changing-commercial-market)

 Written by [Mike Smith](https://blog.plrisk.com/author/mike-smith) | Jul 22, 2015 5:57:29 PM

<https://blog.plrisk.com/hubfs/Imported_Blog_Media/Insurance-Mergers-Changing-the-Commercial-Market-2.jpg>Experts emphasize that it is a seller’s market for insurance brokers as the commercial insurance sector has steadily increased over the past year. As we approach a soft property insurance market, companies are gearing up for growth in [Insurance Mergers & Acquisitions](http://www.plrisk.com/blog/insurance-industry-consolidate/).

Merger and acquisition growth doesn’t seem to be slowing down any time soon. For example, Willis Group Holdings P.L.C. and Towers Watson & Co. released plans to merge in an $18 billion deal. While these mergers are common and occur daily nationwide, the 10 largest brokerages sustained a progressive growth for 2014 as a result of these acquisitions. Collectively, their profits increased by 6.5% which totaled $41.1 billion according to an annual [Business Insurance](http://www.businessinsurance.com/) survey.

Arthur J. Gallagher & Co. held the largest increase with a 28.7% jump from last year. Their success is attributed to an aggressive acquisition strategy, including a $938 million deal in which they acquired Australia’s Wesfarmers Ltd.

Phil Trem, Vice President of Marsh, Berry & Co. Inc. unveiled that they already have 148 deals lined up within the first five months of the year- the highest number on record since mergers and acquisitions began to be tracked in 2005. He stressed the circumstances of the ideal market by saying “It’s absolutely a seller’s market. Firms that never thought about selling are testing the waters.”

Low interest rates which limit profits are attributed to the rapid increase of mergers and acquisitions. What’s more, a healthy economic growth in Western Europe is contributing to relieving pressure on rates for international brokerages.

At [PL Risk](http://www.plrisk.com/), we understand the inevitable fluctuation of the insurance market and its effects on brokerage profits. We stay current on industry trends and aim to protect your clients' agencies from a variety of risk exposures. For more information on our offerings and services, contact us today at (855) 403-5982.

*In addition to bringing you the latest news from the insurance industry, we provide* [*Resources for Agents and Brokers*](http://www.plrisk.com/for-agents/) *nationwide. We’ve recently implemented* [*Hiscox Now*](http://www.plrisk.com/hiscox-now/)*, which allows agents their own access to Hiscox and instant quoting.*

[View full post](https://blog.plrisk.com/blog/insurance-mergers-changing-commercial-market)

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