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Private Equity Interest in Insurance Brokers Gains Momentu

Mark R. Goodman, a Partner in the Corporate Practice Group at Freeborn, was quoted in an article published by AMBEST, Best’s Insurance News, titled, “Broker’s See Higher Valuations as Private Equity Interests Heat Up,” regarding the recently announced acquisitions of two of the world’s largest brokers by two private equity firms and how increasing attractive the broker industry is becoming for investors.

Mr. Goodman commented,  "The perception is if it's a good deal today, given the current pricing, then it's going to be a great deal if the slight hardening of the market continues. “Buying a broker allows private equity the chance to participate in the insurance industry without facing the scrutiny that's necessary when buying an insurer, he said. "It's a lower regulatory hurdle.” "Regulators require a lot of financial information from the buyer of an insurance company, and private equity are very private. They don't want to reveal what their other investments are."

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