by BusinessInsurance.com
June 14, 2012
A combination of rising commercial insurance prices and ongoing industry consolidation will
fuel growth for the global insurance brokerage sector, according to a report released by New Yorkbased
Moody’s Investors Service Inc. on Wednesday.
The report, written by Bruce Ballentine, VP and senior credit officer, and Benjamin Goldberg,
associate analyst, analyzes three global, publicly traded brokerage firms and seven midsize and
smaller firms that are privately held.“The stable sector outlook reflects the valuable service offering
of these firms (given the increasingly complex risks faced by clients) along with their high proportion
of variable costs, limited capital requirements, lack of underwriting or investment risk, and relatively
stable cash flows,” the report states…
