Through the deal, BGC’s insurance entities will be housed within the Ardonagh specialty segment, currently composed of Price Forbes, Bishopsgate, and Compass London Markets.
Specifically, Ed Broking Group and Besso Insurance, which until recently belonged to the Corant Global brand, will become a part of the Ardonagh Group.
David Ross, CEO at Ardonagh, said: “We’re delighted to welcome each of BGC’s insurance brokerage businesses to our Ardonagh specialty platform.
“This is a compelling shakeup of the global wholesale landscape, bringing two of the last remaining independent outfits of scale together to create the largest privately owned specialty broker in London, safeguarding choice for both clients and employees.”
He added that under the “backdrop of unprecedented levels of consolidation” that has resulted in a vacuum in the market, BGC and Ardonagh “will emerge as a preeminent force”.
Roughly 900 staff members work across each of the acquired insurance brands, which created $191m (£135m) in revenues for the 12 months ended 31 March 2021.
In order to fund the acquisition, Ardonagh will complete the deal via a combination of equity and debt.
Steve Hearn, CEO at BGC, said: “It is exciting to announce the sale of our insurance operations to the Ardonagh Group.
“Thanks to the efforts of our colleagues and under the parentage of BGC we have seen a tremendous period of growth. We plan for that upward trajectory to continue.”