McGowan Companies Expands with Acquisition of Aegis Professional Risk

Published: October 26, 2024 | Last Updated: October 26, 2024

McGowan Companies, headquartered in Chicago, Illinois, continues its national expansion with the strategic acquisition of Aegis Professional Risk.

CHICAGO, IL – october 26, 2024 – McGowan Companies, a leading provider of specialized insurance programs, today announced the successful acquisition of the assets of Aegis Professional Risk, a division of Aegis General Insurance Agency, Inc. the deal, finalized through an asset purchase agreement with K2 Insurance Services, LLC, considerably expands McGowan’s capabilities in the professional liability insurance sector.

Breaking Down the Deal: What You need to Know

• Acquirer: McGowan Companies, a Chicago-based insurance program provider with a national footprint.
• Target: Aegis Professional Risk, specializing in professional liability insurance solutions.
• Seller: aegis General Insurance Agency, Inc., a specialty program administrator.
• Facilitator: K2 insurance Services, LLC, an insurance services firm managing a portfolio of program administrators.
• Key Personnel: gene Mason will continue to lead Aegis Pro Risk as President & Managing Director. Thomas B. McGowan, IV, remains President & CEO of The McGowan Companies.

Aegis Pro Risk has built a strong reputation for delivering tailored professional liability coverage to a diverse range of industries.The acquisition allows McGowan Companies to broaden its product offerings and reach a wider client base. K2 Insurance Services played a pivotal role in facilitating the transaction, leveraging its expertise in managing specialty insurance providers.

The Growing Landscape of Specialty Insurance Programs

The insurance industry is witnessing a surge in demand for specialized programs catering to niche markets. This trend is driven by several factors, including:

• Increased complexity of Risks: Businesses face increasingly complex and evolving risks requiring specialized expertise.
• Demand for Tailored Coverage: Standard insurance policies often fail to adequately address the unique needs of specific industries.
• Rise of Program Administrators: program administrators like Aegis General Insurance Agency and K2 Insurance Services are playing a crucial role in developing and distributing these specialized programs.

McGowan Companies’ acquisition of aegis Professional Risk is a strategic move that positions the company to capitalize on this growing market. The company has been actively pursuing a national growth strategy, and this acquisition represents a notable step forward.

Statements from Leadership

“we are very excited to become part of The McGowan Companies,” said Gene Mason, President & Managing Director of Aegis Pro Risk.”Their commitment to investing in and expanding our capabilities will accrue to the benefit of our policyholders.”

thomas B.McGowan,IV,President & CEO of The McGowan Companies,added,”This acquisition fits exceptionally-well with McGowan’s national growth strategy. We are very pleased to add Aegis Pro Risk’s suite of products and services to our diverse portfolio of companies. Gene and his team have a strong tradition of providing exemplary products and services to its clients… a tradition we intend to honour and continue.”

The entire Aegis Pro Risk team will remain in place, ensuring continuity of service for existing clients. This acquisition is expected to close by the end of Q4 2024, pending standard regulatory approvals.

Looking Ahead

McGowan Companies plans to integrate Aegis Professional Risk into its existing operations while maintaining the division’s distinct identity and expertise. The company will focus on leveraging its resources to enhance Aegis Pro Risk’s product offerings and expand its market reach. This acquisition signals a continued period of growth and innovation for McGowan Companies in the specialized insurance sector.