W. R. Berkley Corp. has dropped its plan to off-load its wholesale brokerage subsidiary, Breckenridge Insurance Group Inc., with market contacts saying that the business was priced "too highly," The Insurance Insider reported.
Sources said Breckenridge wanted about $50 million to $60 million valuation on $5 million current pro forma EBITDA with 10x to 12x market multiples. But some brokerage consolidators saw Breckenridge as less compelling because of its mixed bag of businesses. The operation includes the wholesale commercial brokerage Breckenridge Insurance Services, specialty program administrator Blue River Underwriters, insurance provider OSC Insurance Services, specialty division InSpecialty and program administration association Target Markets.
W.R. Berkley had been reportedly looking for banks to get guidance on ways to sell all or parts of Breckenridge, which it saw as a noncore part. In 2018, Breckenridge CEO Tracey Carragher failed to execute a management buyout with firms including Risk Placement Services Inc. and Worldwide Facilities LLC, according to the report, citing market sources.
The news outlet reported that W.R. Berkley and Worldwide Facilities declined to comment and Risk Placement Services could not be reached for comment.