Deal would create brokerage with £400m annual revenue

Hyperion has confirmed that it is exclusive merger talks with fellow London-based broker RK Harrison (RKH).

It is proposed that the combined entity will be called Hyperion Insurance Group, with Howden, DUAL, RK Harrison and Aqua maintaining their brands.

The companies said the deal would create the largest independent, employee-owned insurance broking group in the world, with projected annual revenues approaching £400m and close to 3,000 employees in 37 countries.

Hyperion chief executive David Howden said: “Hyperion and RKH are two outstanding entrepreneurial success stories.

“The combined group will boast an extensive UK and international footprint, a formidable reputation and an extremely complementary business mix with enhanced and diverse service offerings and capabilities.”

RKH chief executive Paul Bridgwater added: “As fundamentals continue to evolve in the insurance market, this merger will significantly strengthen our combined capabilities and geographic representation for the benefit of our clients.

“Importantly, continuing employee ownership will ensure that we remain the employer of choice for the industry’s most entrepreneurial talent.”

Hyperion said the merger would create the “pre-eminent UK retail distribution network with revenues of £190m and 1,900 employees.

It said it would also create a “leading” independent specialty lines insurance and reinsurance broker with revenues of £135m and over 550 people.

It added that it would also create a global managing general agency with gross written premium of £625m and over 400 employees.

The combined group would be majority-owned by employees in partnership with Hyperion private equity backer General Atlantic.