Howden adds investment consulting as it agrees to acquire Barnett Waddingham
Howden, the global insurance, reinsurance and advisory group, has now added institutional investment consultancy to its growing service offering, having agreed to acquire UK professional services firm Barnett Waddingham.
Barnett Waddingham provides a much broader range of services, across pensions and benefits, insurance, investment and technology.
But, for Artemis’ audience, perhaps the most interesting addition to Howden’s growing business is the investment consultancy and advisory offering.
Rivals Aon, Marsh McLennan and Arthur J. Gallagher all have their own investment consultancy arms, under which they provide advice and support to institutions and large investors, including in areas such as investment manager selection.
Barnett Waddingham supports pensions and investment entities with defining objectives, asset allocation, strategy and designing bespoke portfolios, as well as selecting managers and their ongoing monitoring.
Howden, through its Howden Re reinsurance broking arm and its Howden Capital Markets & Advisory (HCMA) banking and insurance-linked securities (ILS) arm, already has many touchpoints with the ILS community.
Now, by adding a significant footprint in investment consultancy, Howden will be supporting client needs in originating risk, structuring and selling ILS securities such as catastrophe bonds, and also working with institutional investors and specialist investment managers through this Barnett Waddingham acquisition, which could extend to ILS investment consultancy in time.
Which further levels the playing-field, in terms of the breadth of Howden’s service offering that is of relevance to the ILS community, with its key broking rivals.
Howden said that the acquisition will provide it a platform for expanding in global markets, while bringing high quality pension and related advice capability to the firm.
The deal will double Howden’s global Employee Benefits business, in terms of employees, lifting it to around 4,000 experts and delivering combined revenue approaching £500 million around the world.
David Howden, CEO, Howden, commented, “In our journey to build a global broker we recognise the need to create a world-class employee benefits business for our clients. As we always do, we have waited for the right partner to expand our capabilities, with experts who are entrepreneurial and culturally aligned, and with whom we can do more together. Barnett Waddingham’s people have this in abundance.
“Together, we will take a leading position in our home markets of the UK and Ireland in employee benefits as well as in insurance broking. In the UK, there will be over 10,000 of us in our wider business, across more than 200 offices. We’re serving millions of individuals, businesses and organisations, including over two thirds of the FTSE 100, bringing the same unique energy and approach to all our clients.
“Under Glenn Thomas’ leadership since 2018, our Employee Benefits division has delivered a remarkable 52% compound annual growth rate. Expanding our pensions advisory and administration capability is crucial to our long-term, global growth plans, and Barnett Waddingham provides a fantastic platform to build our capability for clients around the world. Critically, Barnett Waddingham’s working partners will reinvest significantly into Howden, underlining their commitment to a long-term future with us, and delivering extraordinary alignment for our future ambitions.”
Glenn Thomas, CEO, UK Health & Employee Benefits and Global Practice Leader, Howden, added, “In the global war for talent, companies distinguish themselves with outstanding employee benefits. Barnett Waddingham’s extensive pensions expertise, together with Howden’s market leading presence in the health and employee benefits market, creates a full-service proposition and one of the largest pensions and employee benefits consultancies in the UK, with one of the most extensive global footprints in the market. The combination brings together two leading businesses with an exceptional cultural fit, and the acquisition reflects Howden’s deep commitment to investing in its employee benefits advisory capabilities.”
Andrew Vaughan, Senior Partner, Barnett Waddingham, further stated, “We’re really excited to join Howden because of its commitment to the UK market, and its unique culture. Being part of Howden also strengthens our ability to deliver even greater value to our risk, pensions, investment, and insurance clients through enhanced solutions, including our tech-enabled capabilities, and access to global expertise. As we reflect on 35 years of continuous growth and development at Barnett Waddingham, we are proud of the heritage and principles that have made us who we are – people-centricity, partnering with clients and the delivery of high-quality services. As we join Howden, we look forward to combining our strengths to build something even greater together.”
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